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02.06.2018 | Investors

Allergan Reports Solid Finish to 2017 with 12% Increase in Fourth Quarter GAAP Net Revenues to $4.3 Billion

DUBLIN, IRELAND – February 6, 2018 – Allergan plc (NYSE: AGN) today reported its fourth quarter and full-year 2017 continuing operations performance.

Fourth Quarter and Full-Year 2017 Continuing Operations
 
(unaudited; $ in millions, except per share amounts)   Q4 '17     Q4 '16     Q3 '17     Q4 '17 v Q4 '16     Q4 '17 v Q3 '17     Year Ended December 31, 2017   Year Ended December 31, 2016   2017 v 2016  
Total net revenues**   $ 4,326.1     $ 3,864.3     $ 4,034.3       12.0 %     7.2 %   $ 15,940.7   $ 14,570.6     9.4 %
                                                             
Operating (Loss)   $ (90.5 )   $ (900.0 )   $ (4,022.3 )     (89.9 )%     (97.8 )%   $ (5,921.2 ) $ (1,825.5 )   224.4 %
Diluted EPS - Continuing Operations   $ 9.97     $ (0.31 )   $ (12.05 )   n.m.       (182.7 )%   $ (11.99 ) $ (3.17 )   278.2 %
SG&A Expense   $ 1,266.8     $ 1,276.8     $ 1,169.7       (0.8 )%     8.3 %   $ 5,016.7   $ 4,740.3     5.8 %
R&D Expense   $ 408.2     $ 913.3     $ 442.6       (55.3 )%     (7.8 )%   $ 2,100.1   $ 2,575.7     (18.5 )%
Continuing Operations Tax Rate   n.m.       96.4 %     29.3 %   n.m.     n.m.       64.2 %   67.0 %   (2.8 )%
                                                             
Non-GAAP Adjusted Operating Income   $ 2,174.3     $ 1,868.7     $ 1,968.2       16.4 %     10.5 %   $ 7,647.5   $ 7,245.3     5.6 %
Non-GAAP Performance Net Income Per Share   $ 4.86     $ 3.90     $ 4.15       24.6 %     17.1 %   $ 16.35   $ 13.51     21.0 %
Non-GAAP Adjusted EBITDA   $ 2,284.5     $ 1,975.7     $ 2,051.7       15.6 %     11.3 %   $ 8,097.6   $ 7,628.7     6.1 %
Non-GAAP SG&A Expense   $ 1,132.8     $ 1,067.0     $ 1,099.6       6.2 %     3.0 %   $ 4,554.8   $ 4,081.7     11.6 %
Non-GAAP R&D Expense   $ 405.7     $ 425.9     $ 405.3       (4.7 )%     0.1 %   $ 1,598.8   $ 1,433.8     11.5 %
Non-GAAP Continuing Operations Tax Rate     11.4 %     10.4 %     13.1 %     1.0 %     (1.7 )%     12.6 %   8.9 %   3.7 %
                                                             
** Excludes the reclassification of revenues of ($80.0) million in the twelve months ended December 31, 2016 related to the portion of Allergan product revenues sold by our former Anda Distribution Business into discontinued operations.  
 
Total fourth quarter net revenues were $4.33 billion, a 12.0 percent increase from the prior year quarter, driven by BOTOX® Cosmetic, BOTOX® Therapeutic, JUVÉDERM® Collection, ALLODERM®, CoolSculpting® and new products, including VRAYLAR™, NAMZARIC® and VIBERZI®. The increase was partially offset by lower revenues from products losing patent exclusivity, and the continuing decline in ACZONE® and NAMENDA XR®. For the full year 2017, Allergan reported total net revenues of $15.94 billion, a 9.4 percent increase versus the prior year, driven by continued strong growth across key therapeutic areas and key products, and the addition of Regenerative Medicine products and CoolSculpting®.
 
“2017 was a pivotal year for Allergan and we delivered solid results. We powered strong revenue growth of our top products and in each of our regions. We acquired, integrated and grew two new businesses and continued to advance our R&D pipeline. Allergan also continued to execute our capital deployment plan by completing a $15 billion share repurchase program, instituting a dividend and paying down debt in 2017,” said Brent Saunders, Chairman and CEO of Allergan. “I believe that Allergan has a strong future and I am especially proud of our Allergan colleagues who continue to be Bold for Life by delivering treatments that make a difference for patients around the world.”
 
Fourth Quarter 2017 Performance
GAAP operating loss from continuing operations in the fourth quarter 2017 was $90.5 million, including the impact of amortization, in-process research and development (R&D) impairments and charges associated with the December 2017 restructuring program announced on January 3, 2018 (herein referred to as the “December 2017 restructuring program”). Non-GAAP adjusted operating income from continuing operations in the fourth quarter of 2017 was $2.17 billion, an increase of 16.4 percent versus the prior year quarter. Cash flow from operations for the fourth quarter of 2017 increased to approximately $2.05 billion.
 
Full-Year 2017 Performance
GAAP operating loss from continuing operations for the full year 2017 was $5.92 billion, compared with $1.83 billion in 2016 primarily due to impairment charges recognized in the third quarter of 2017 of $3.2 billion related to RESTASIS® and $646.0 million related to ACZONE®. Non-GAAP adjusted operating income from continuing operations for the full year 2017 was $7.65 billion, an increase of 5.6 percent versus prior year. GAAP Cash flow from operations for the full year of 2017 increased to approximately $5.87 billion, compared to $1.45 billion in 2016, which was negatively impacted by cash taxes paid in connection with the gain recognized on the businesses sold to Teva Pharmaceuticals Industries, Ltd (“Teva”).
 
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A) Expense was $1.27 billion for the fourth quarter 2017, compared to $1.28 billion in the prior year quarter. Included within GAAP SG&A in the fourth quarter and full year 2017 were charges related to the December 2017 restructuring program of $80.0 million. Total non-GAAP SG&A expense increased to $1.13 billion for the fourth quarter 2017, compared to $1.07 billion in the prior year period, primarily due to costs associated with the addition of the Regenerative Medicine and CoolSculpting® businesses. GAAP R&D investment for the fourth quarter of 2017 was $408.2 million, compared to $913.3 million in the fourth quarter of 2016. Non-GAAP R&D investment for the fourth quarter 2017 was $405.7 million, a decrease of 4.7 percent over the prior year quarter, due to reprioritization of on R&D programs and tight expense management.
 
Asset Sales & Impairments, Net and In-Process R&D Impairments
The Company recorded impairment charges of $238.5 million and $456.0 million in the three months ended December 31, 2017 and 2016, respectively. The Company excludes asset sales and impairments, net and in-process research and development impairments from its Non-GAAP performance net income attributable to shareholders as well as Adjusted EBITDA and Adjusted Operating Income.
 
Amortization, Other Income (Expense) Net, Tax and Capitalization
Amortization expense from continuing operations for the fourth quarter 2017 was $1.92 billion, compared to $1.64 billion in the fourth quarter of 2016.
 
The Company’s GAAP continuing operations tax rate benefit in the fourth quarter of 2017, was primarily attributable to discrete income tax benefits recognized as a result of the Tax Cuts and Jobs Act (“TCJA”). The Company’s non-GAAP adjusted continuing operations tax rate was 11.4 percent in the fourth quarter 2017. As of December 31, 2017, Allergan had cash and marketable securities of $6.45 billion and outstanding indebtedness of $30.1 billion.
 
Provisional Estimates of the Impact of U.S. Tax Reform
Allergan recorded a net provisional benefit of approximately $2.8 billion related to the TCJA. This amount includes a $730 million provisional expense representing the U.S. tax payable on deemed repatriated earnings of non-U.S. subsidiaries offset by a $3.5 billion net reduction of U.S. deferred tax liabilities due to the lower enacted U.S. tax rate and the change in assertion regarding permanently reinvested earnings as a result of the transition to a territorial tax system. These provisional estimates are based on the Company’s initial analysis and current interpretation of the legislation. Given the complexity of the TCJA, anticipated guidance from the U.S. Treasury, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board, these estimates may be adjusted during 2018.
 
Discontinued Operations and Continuing Operations
As a result of the divestiture of the Company’s generics business and the divestiture of the Company’s Anda Distribution business in 2016, the financial results of those businesses have been reclassified to discontinued operations for all periods presented in our consolidated financial statements up through the date of the divestitures.
 
Included within (loss) from discontinued operations for the three months ended December 31, 2017 was a charge to settle certain Teva related matters, net of tax of $387.4 million.
 
Included in segment revenues in the twelve months ended December 31, 2016 are product sales that were sold by the Anda Distribution business once the Anda Distribution business had sold the product to a third-party customer. These sales are included in segment results and are excluded from total continuing operations revenues through a reduction to Corporate revenues. Cost of sales for these products in discontinued operations is equal to our average third-party cost of sales for third-party branded products distributed by Anda Distribution.
Fourth Quarter 2017 Business Segment Results
U.S. Specialized Therapeutics
Segment Information
 
(Unaudited; $ in millions)   Three Months Ended December 31,  
    2017     2016  
Eye Care   $ 671.7     $ 660.1  
Total Medical Aesthetics     712.9       440.3  
Facial Aesthetics     380.0       333.0  
Plastic Surgery     69.0       57.3  
Regenerative Medicine     128.9       -  
Body Contouring     94.4       -  
Skin Care     40.6       50.0  
Medical Dermatology     85.5       114.3  
Neuroscience & Urology     395.4       342.5  
Other Revenues     16.3       13.7  
Net revenues   $ 1,881.8     $ 1,570.9  
Operating expenses:                
Cost of sales(1)     146.0       75.9  
Selling and marketing     328.8       292.2  
General and administrative     58.8       47.8  
Segment contribution   $ 1,348.2     $ 1,155.0  
Segment margin     71.6 %     73.5 %
Segment gross margin(2)     92.2 %     95.2 %
                 
(1) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost of sales not attributable to segment results.  
(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.  
 
U.S. Specialized Therapeutics net revenues in the fourth quarter of 2017 were $1.9 billion, an increase of 19.8 percent versus the prior year quarter, driven primarily by the addition of the Regenerative Medicine and CoolSculpting® businesses, as well as growth in BOTOX® and JUVÉDERM® Collection, offset by decreased revenues in Medical Dermatology.
 
Eye Care
  • RESTASIS® net revenues in the fourth quarter of 2017 were $400.3 million, an increase of 1.8 percent versus the prior year quarter.
  • The Glaucoma franchise experienced a modest decline with ALPHAGAN®/COMBIGAN® net revenues in the fourth quarter of 2017 remaining stable at $101.8 million, while LUMIGAN®/GANFORT® net revenues decreased 5.9 percent versus the prior year quarter to $80.9 million in the fourth quarter of 2017, primarily impacted by lower volume.
  • OZURDEX® net revenues in the fourth quarter of 2017 increased 16.8 percent from the prior year quarter to $26.4 million, driven by continued strong demand.
 
Medical Aesthetics
  • The Facial Aesthetics franchise continues to deliver strong growth with revenues increasing 14.1 percent versus the prior year quarter.
  • BOTOX® Cosmetic net revenues in the fourth quarter of 2017 were $228.4 million, up 14.5 percent versus the prior year quarter, reflecting continued strong demand growth.
  • JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the fourth quarter of 2017 were $139.5 million, up 14.7 percent versus the prior year quarter, driven by continued strong demand and market share gains.
  •  Regenerative Medicine
    • ALLODERM® net revenues in the fourth quarter of 2017 were $97.9 million.
    • STRATTICE™ net revenues were $27.3 million in the fourth quarter of 2017.
  • Body Contouring
    • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the fourth quarter of 2017 were $94.4 million.
  • Plastic Surgery
    • Breast implant net revenues in the fourth quarter of 2017 were $69.0 million, an increase of 21.5 percent versus the prior year quarter, driven by higher demand following the launch of INSPIRA™ breast implants.
  • Skin Care
    • SkinMedica® net revenues in the fourth quarter of 2017 were $24.7 million, a decrease of 7.8 percent versus the prior year quarter, due in part to supply disruptions.
 
Medical Dermatology
  • ACZONE® net revenues in the fourth quarter of 2017 were $38.0 million, a decrease of 37.9 percent versus the prior year quarter, primarily due to generic pressure on the branded acne category, the loss of exclusivity for ACZONE® 5% and higher discounts for formulary coverage.
  • TAZORAC® net revenues in the fourth quarter of 2017 were $14.1 million compared with $27.5 million in the prior year quarter, primarily due to continued generic competition.
 
Neurosciences & Urology
  • BOTOX® Therapeutic net revenues in the fourth quarter of 2017 were $367.2 million, an increase of 17.1 percent versus the prior year quarter, primarily driven by continued growth in the chronic migraine, overactive bladder and adult spasticity indications.
 
U.S. Specialized Therapeutics gross margin for the fourth quarter of 2017 was 92.2 percent, negatively impacted by the addition of the Regenerative Medicine and CoolSculpting® businesses. SG&A expenses in the segment for the fourth quarter 2017 were $387.6 million. Selling and marketing expenses in the segment for the fourth quarter 2017 were $328.8 million, an increase of 12.5 percent versus the prior year quarter mainly attributed to the addition of the Regenerative Medicine and CoolSculpting® businesses, offset, in part by reduced promotional spending. General and administrative expenses at the segment level for the fourth quarter 2017 were $58.8 million, an increase of 23.0 percent versus the prior year quarter, attributed in part to the addition of the Regenerative Medicine and CoolSculpting® businesses. Segment contribution for the fourth quarter 2017 remained strong at $1.35 billion, an increase of 16.7 percent versus the prior year quarter.
 
U.S. General Medicine
Segment Information 
(Unaudited; $ in millions)   Three Months Ended December 31,  
    2017     2016  
Central Nervous System   $ 349.0     $ 339.0  
Gastrointestinal     453.2       444.0  
Women's Health     285.8       314.5  
Anti-Infectives     66.6       58.0  
Diversified Brands     319.4       327.8  
Other Revenues     51.3       49.7  
Net revenues   $ 1,525.3     $ 1,533.0  
Operating expenses:                
Cost of sales(1)     220.7       230.2  
Selling and marketing     245.8       282.9  
General and administrative     47.6       46.7  
Segment contribution   $ 1,011.2     $ 973.2  
Segment margin     66.3 %     63.5 %
Segment gross margin(2)     85.5 %     85.0 %
                 
(1) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost of sales not attributable to segment results.  
(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.  
 
U.S. General Medicine net revenues in the fourth quarter 2017 were $1.5 billion, remaining stable versus the prior year quarter, driven by strong growth from LINZESS®, VRAYLAR™, NAMZARIC® and Lo LOESTRIN®, offset by lower revenues from MINASTRIN® and ASACOL® due to generic competition, and to the continued decline in NAMENDA XR ®.
 
Central Nervous System
  • NAMENDA XR® net revenues in the fourth quarter of 2017 were $97.8 million, a decrease of 30.7 percent versus the prior year quarter, driven primarily by lower demand and generic pressure.
  • NAMZARIC® net revenues in the fourth quarter of 2017 increased to $36.8 million from $19.5 million in the prior year quarter driven by increased demand.
  • VRAYLAR™ net revenues in the fourth quarter of 2017 were $87.7 million, compared with $43.2 million in the prior year quarter, driven by continued strong demand growth.
  • VIIBRYD®/FETZIMA® net revenues in the fourth quarter of 2017 were $89.0 million, compared with $89.7 million in the prior year quarter.
  • SAPHRIS® net revenues in the fourth quarter of 2017 were $37.7 million, a decrease of 12.7 percent versus the prior year quarter, primarily due to lower demand.
 
Gastrointestinal
  • LINZESS® net revenues in the fourth quarter of 2017 were $194.8 million, an increase of 12.2 percent versus the prior year quarter, driven by continued strong demand growth.
  • VIBERZI® net revenues in the fourth quarter of 2017 were $42.9 million, an increase of 12.9 percent versus the prior year quarter, driven by higher average selling prices.
  • ASACOL®/DELZICOL® net revenues in the fourth quarter of 2017 were $42.8 million, a decrease of 32.0 percent versus the prior year quarter, impacted by generic entry for ASACOL® HD and a decline in demand for DELZICOL®.
  • ZENPEP® net revenues in the fourth quarter of 2017 were $58.5 million, an increase of 5.2 percent versus the prior year quarter, driven by higher average selling prices.
  • CARAFATE®/SULCRATE® net revenues in the fourth quarter of 2017 were $59.2 million, a decrease of 3.4 percent versus the prior year quarter.
 
Women’s Health
  • Lo LOESTRIN® net revenues in the fourth quarter of 2017 were $126.5 million, an increase of 17.7 percent versus the prior year quarter, driven by strong demand growth and higher average selling prices. Lo LOESTRIN® remains the number one prescribed branded oral contraceptive.
  • ESTRACE® Cream net revenues in the fourth quarter were $101.5 million, compared to $103.0 million in the prior year quarter.
  • MINASTRIN® 24 net revenues in the fourth quarter of 2017 were $5.3 million, compared to $78.4 million in the prior year quarter, impacted by loss of patent exclusivity for MINASTRIN® 24 in March 2017.
  • TAYTULLA™ net revenues were $27.4 million in the fourth quarter of 2017 following the launch of this new oral contraceptive soft gel product in November 2016.
Anti-Infectives
  • TEFLARO® net revenues in the fourth quarter of 2017 were $29.2 million, a decrease of 7.9 percent versus the prior year quarter, primarily impacted by generic pressure in the category.
  • AVYCAZ® net revenues in the fourth quarter of 2017 were $18.5 million versus $9.2 million in the fourth quarter of 2016, when product supply was disrupted.
  • DALVANCE® net revenues in the fourth quarter of 2017 were $13.0 million compared to $12.6 million in the prior year quarter.
 
Diversified Brands and Other Products
  • Diversified Brands net revenues in the fourth quarter of 2017 were $319.4 million, a decrease of 2.6 percent versus the prior year quarter.
  • Within Diversified Brands, BYSTOLIC®/BYVALSON® net revenues in the fourth quarter of 2017 were $157.5 million, compared to $159.8 million in the prior year quarter.
 
U.S. General Medicine gross margin for the fourth quarter of 2017 increased to 85.5 percent. SG&A expenses in the segment were $293.4 million in the fourth quarter of 2017. Selling and marketing expenses in the segment were $245.8 million, a decrease of 13.1 percent versus the prior year quarter, due to a decrease in promotional expenses and sales force reductions due to previous restructurings. General and administrative expenses were $47.6 million, an increase of 1.9 percent versus the prior year quarter. Segment contribution for the fourth quarter 2017 was $1.01 billion.

International Segment Information 
(Unaudited; $ in millions)   Three Months Ended December 31,  
    2017     2016  
Eye Care   $ 342.7     $ 315.0  
Total Medical Aesthetics     389.3       284.6  
Facial Aesthetics     311.4       244.0  
Plastic Surgery     40.6       37.8  
Regenerative Medicine     5.8       -  
Body Contouring     27.0       -  
Skin Care     4.5       2.8  
Botox Therapeutics and Other     160.6       138.3  
Other Revenues     23.3       15.3  
Net revenues   $ 915.9     $ 753.2  
Operating expenses:                
Cost of sales(1)     137.1       108.9  
Selling and marketing     240.6       205.5  
General and administrative     34.1       30.7  
Segment contribution   $ 504.1     $ 408.1  
Segment margin     55.0 %     54.2 %
Segment gross margin (2)     85.0 %     85.5 %
                 
(1) Excludes amortization and impairment of acquired intangibles including product rights  as well as indirect cost of sales not attributable to segment results.  
(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.  
 
International net revenues in the fourth quarter of 2017 were $915.9 million, an increase of 16.8 percent versus the prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics, BOTOX® Therapeutic, Eye Care and the addition of CoolSculpting®.
 
Medical Aesthetics
  • Facial Aesthetics
  • BOTOX® Cosmetic net revenues in the fourth quarter of 2017 were $155.0 million, an increase of 20.1 percent versus the prior year quarter excluding foreign exchange impact, driven by continued strong growth across all regions.
  • JUVÉDERM® Collection net revenues in the fourth quarter of 2017 were $154.7 million, an increase of 27.8 percent versus the prior year quarter excluding foreign exchange impact, reflecting continued strong demand growth across all regions.
  • Plastic Surgery
  • Breast implant net revenues in the fourth quarter of 2017 were $40.1 million, an increase of 2.4 percent versus the prior year quarter, excluding foreign exchange impact.
 
  • Body Contouring
  • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the fourth quarter of 2017 were $27.0 million.
 
Eye Care
  • LUMIGAN®/GANFORT® and ALPHAGAN®/COMBIGAN® net revenues in the fourth quarter of 2017 were $99.7 million and $46.7 million, respectively, reflecting continued stable performance.
  • OZURDEX® net revenues in the fourth quarter of 2017 were $60.9 million, up 17.4 percent versus the prior year quarter excluding foreign exchange impact, reflecting continued strong demand across all regions.
  • OPTIVE® net revenues in the fourth quarter of 2017 were $30.6 million, up 11.1 percent versus the prior year quarter excluding foreign exchange impact, reflecting strong demand in Europe and Latin America/Canada.
 
Botox Therapeutic
  • BOTOX® Therapeutic net revenues in the fourth quarter of 2017 were $96.9 million, an increase of 11.2 percent versus the prior year quarter excluding foreign exchange impact, reflecting strong demand in Europe and Latin America/Canada.
 
International gross margin for the fourth quarter of 2017 was 85.0 percent. SG&A expenses in the segment were $274.7 million in the fourth quarter of 2017. Selling and marketing expenses in the segment were $240.6 million, an increase of 11.2 percent versus prior year excluding foreign exchange impact, in line with higher sales and the addition of CoolSculpting®. General and administrative expenses were $34.1 million, an increase of 5.9 percent versus the prior year quarter excluding foreign exchange impact. Segment contribution was $504.1 million.
 
Corporate Function
Included within our corporate function are shared costs, including above site and unallocated costs associated with running our global manufacturing facilities, corporate general and administrative expenses and corporate initiatives.
 
Pipeline Update
Allergan R&D continues to deliver on its pipeline. Key development highlights included:
 
U.S. and International Branded Product Approvals
  • Allergan received approval from the U.S. Food and Drug Administration (FDA) for the use of VRAYLAR™ (cariprazine) for the maintenance treatment of adults with schizophrenia. VRAYLAR™ is also approved in the U.S. for the treatment of schizophrenia in adults and acute treatment of manic or mixed episodes associated with bipolar I disorder in adults.
  • Allergan received FDA approval for AVYCAZ® (ceftazidime and avibactam) for the treatment of patients with hospital-acquired bacterial pneumonia and ventilator-associated Bacterial Pneumonia (HABP/VABP). This marks the third approved indication for AVYCAZ®, in addition to complicated intra-abdominal infections and complicated urinary tract infections.
  • Allergan’s CoolSculpting® treatment received clearance from the FDA for the improved appearance of lax tissue in conjunction with submental fat, or double chin, treatments. CoolSculpting® is also FDA-cleared in the U.S. for the treatment of visible fat bulges in the submental area, thigh, abdomen and flank, along with bra fat, back fat, underneath the buttocks and upper arm.
  • Allergan received an Imported Drugs License (IDL) from the Chinese Food and Drug Administration (CFDA) to market Ozurdex® (dexamethasone intravitreal implant 0.7 mg) for the treatment of adult patients with macular edema following either Branch Retinal Vein Occlusion (BRVO) or Central Retinal Vein Occlusion (CRVO).
  • Allergan received approval from the FDA for BOTOX® Cosmetic for the temporary improvement in the appearance of moderate to severe forehead lines associated with frontalis muscle activity in adults. This marks the third approved indication for BOTOX® Cosmetic, in addition to crow’s feet and glabellar lines.
 
Regulatory Milestones & Clinical Updates
  • Allergan announced that the FDA has accepted a New Drug Application (NDA) for Seysara™ (sarecycline) for the treatment of moderate to severe acne vulgaris in patients 9 years of age and older.
  • Allergan announced that VISTABEL® (botulinum toxin type A) received a Positive Opinion from the Agence Nationale de Sécurité du Médicament et des Produits de Santé (ANSM) for the temporary improvement in the appearance of moderate to severe forehead lines in adults when the severity of the facial lines has an important psychological impact. This is an important step toward VISTABEL® securing national licenses in the 28 countries of the European Union as well as Norway and Iceland.
  • Allergan announced positive topline results for a phase 3 study of cariprazine for the treatment of adults with major depressive episodes associated with bipolar I disorder (bipolar I depression). This is the second positive pivotal trial of cariprazine for this investigational use. The Company plans to submit a supplemental New Drug Application (sNDA) to the FDA in the 2nd half of 2018.
 
First Quarter and Full Year 2018 Continuing Operations Guidance
 
   Twelve Months Ending December 31, 2018
Full Year 2018 GAAP NON-GAAP
     
Total Net Revenues $15.0 - $15.3 billion $15.0 - $15.3 billion
Gross Margin (as a % of revenues) 85.5% - 86.0% 85.5% - 86.0%
SG&A Expense ~$4.350 billion ~$4.250 billion
R&D Expense ~$1.9 billion ~$1.5 billion
Net Interest Expense/Other Income (Expense) ~ 900.0 million ~ 900.0 million
Tax Rate ~ 40% ~ 14%
Net Income / (Loss) Per Share1 $(2.27) - $(1.52) $15.25 - $16.00
Average 2018 Share Count2 ~ 344.0 million ~ 350.0 million
Cash Flow from Operations $4.7 - $5.0 billion N/A
     
  Three Months Ending March 31, 2018
Quarter Ending March 31, 2018 Select Guidance GAAP NON-GAAP
     
Total Net Revenues $3.5 - $3.6 billion $3.5 - $3.6 billion
Net Income / (Loss) Per Share $(1.27) - $(1.07) $3.20 - $3.40
     
1 GAAP represents EPS for ordinary shareholders. GAAP (loss) per share includes the impact of amortization of approximately $6.45 billion, IPR&D impairments and asset sales and impairments, net of $200 million and dividends on preferred shares through the date of conversion into ordinary shares. Non-GAAP represents performance net income per share.
2 GAAP EPS shares do not include dilution of shares as earnings are a net loss.  As such, the dilution impact of preferred share conversion and outstanding equity awards is not included in the forecasted shares.
 
Fourth Quarter and Full-Year 2017 Conference Call and Webcast Details
Allergan will host a conference call and webcast today, Tuesday, February 6, at 8:30 a.m. Eastern Time to discuss its fourth quarter and full-year 2017 results. The dial-in number to access the call is U.S./Canada (877) 251-7980, International (706) 643-1573, and the conference ID is 67779395. A taped replay of the conference call will also be available beginning approximately two hours after the call’s conclusion, and will remain available through 11:30 p.m. Eastern Time on March 6, 2018. The replay may be accessed by dialing (855) 859-2056 and entering the conference ID 67779395. From international locations, the replay may be accessed by dialing (404) 537-3406 and entering the same conference ID.
 
To access the live webcast, please visit Allergan's Investor Relations Web site at https://www.allergan.com/investors. A replay of the webcast will also be available.
 
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical company and a leader in a new industry model – Growth Pharma. Allergan is focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world.
Allergan markets a portfolio of leading brands and best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women’s health, urology and anti-infective therapeutic categories.
Allergan is an industry leader in Open Science, a model of research and development, which defines our approach to identifying and developing game-changing ideas and innovation for better patient care. With this approach, Allergan has built one of the broadest development pipelines in the pharmaceutical industry.
Allergan’s success is powered by our global colleagues’ commitment to being Bold for Life. Together, we build bridges, power ideas, act fast and drive results for our customers and patients around the world by always doing what is right.
With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live longer, healthier lives every day.
For more information, visit Allergan’s website at www.Allergan.com.
 
Forward-Looking Statement
Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Allergan’s current perspective on existing trends and information as of the date of this release. Actual results may differ materially from Allergan’s current expectations depending upon a number of factors affecting Allergan’s business. These factors include, among others, the difficulty of predicting the timing or outcome of FDA approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan’s products; the impact of uncertainty around timing of generic entry related to key products, including RESTASIS®, on our financial results; uncertainty associated with financial projections, projected cost reductions, projected synergies, restructurings, increased costs, and adverse tax consequences; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan’s periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan's Annual Report on Form 10-K for the year ended December 31, 2016 and Allergan's Quarterly Report on Form 10-Q for the period ended September 30, 2017. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.
Media Contacts
Amy Rose
Global Corporate Media Relations
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Global Corporate Media Relations
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Mark Marmur
International Communications & Public Relations
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Investor relations:

Karina Calzadilla
Investor Relations
+1 (862) 261 7488