DUBLIN, Sept. 28, 2015 /PRNewswire/ -- Allergan plc
(NYSE: AGN), a leading global pharmaceutical company, today
announced its updated second-half 2015 continuing operations
financial forecast. The forecast reflects adjustments for the
upcoming expected discontinued operations as a result of the
previously announced divestiture of its Global Generics business to
Teva Pharmaceuticals. The Company intends to begin reporting its
Global Generics business as discontinued operations with its third
quarter 2015 results. The transaction with Teva is expected to
close in the first quarter of 2016.
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Continuing operations includes the U.S. Brands, U.S. Medical,
International Brands and Anda distribution segments. For the
second-half of 2015, Allergan expects to report non-GAAP continuing
operations as follows:
- Revenue is expected to be greater than $8 billion
- Adjusted earnings before interest and taxes (EBIT) are expected
to be between $3.8 billion and $4.0
billion
- Non-GAAP earnings per share (EPS) are expected to be between
$6.25 and $6.65
Allergan's continuing operations forecast for the second half of
2015 includes all of the company's non-GAAP interest expense of
approximately ~$750 million.
Following the close of the divestiture of the Generics business
to Teva, New Allergan expects to have a powerful financial profile
to drive continued long-term growth:
- 10% branded revenue growth
- Non-GAAP gross margins of 77% to 79% with additional long-term
expansion anticipated
- Non-GAAP SG&A as a percentage of revenue between 21-24%,
declining within that range over time
- Non-GAAP tax rate of ~15%
- Interest expense for New Allergan will be largely dependent on
capital deployment decisions following the close of the
transaction
- Commitment to investment grade ratings
"New Allergan will have strong double-digit revenue
growth and will be a development powerhouse stacked with 70
mid-to-late stage R&D projects to address customer and patient
needs," said Brent Saunders, CEO and
President. "The New Allergan will be lean and nimble with an
expanded margin profile driven by leading brands in seven
therapeutic categories, a streamlined operating
model with one of the most efficient SG&A as a percentage
of sales in the industry, a non-GAAP tax rate of
approximately 15 percent, and a simplified manufacturing
network globally."
"The continued robust performance of our overall
business and strong mid-to-late stage pipeline puts Allergan
in a strong position to meet our growth targets for the remainder
of the year and over the long-term."
For additional information please refer to our Investor FAQ
here:
http://ir.allergan.com/phoenix.zhtml?c=65778&p=irol-investorfaqs
About Allergan
Allergan plc (NYSE: AGN), headquartered
in Dublin, Ireland, is a unique,
global pharmaceutical company and a leader in a new industry model
– Growth Pharma. Allergan is focused on developing,
manufacturing and commercializing innovative branded
pharmaceuticals, high-quality generic and over-the-counter
medicines and biologic products for patients around the world.
Allergan markets a portfolio of best-in-class products that
provide valuable treatments for the central nervous system, eye
care, medical aesthetics, gastroenterology, women's health,
urology, cardiovascular and anti-infective therapeutic categories,
and operates the world's third-largest global generics business,
providing patients around the globe with increased access to
affordable, high-quality medicines. Allergan is an industry leader
in research and development, with one of the broadest development
pipelines in the pharmaceutical industry and a leading position in
the submission of generic product applications globally.
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.
For more information, visit Allergan's website at
www.allergan.com.
Forward-Looking Statements
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 of existing trends and information
as of the date of this release. Except as expressly required by
law, Allergan disclaims any intent or obligation to update these
forward-looking statements. 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 risks associated with acquisition transactions; 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;
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 Quarterly Report on Form 10-Q for the quarter ended
June 30, 2015 (such periodic public
filings having been filed under the "Allergan plc" or "Actavis plc"
names) and from time to time in Allergan's other investor
communications . Except as expressly required by law, Allergan
disclaims any intent or obligation to update these forward-looking
statements.
The following table presents a reconciliation of expected
adjusted earnings before interest and taxes (EBIT) for the six
months ending December 31, 2015:
Table
1
|
|
|
ALLERGAN
PLC
|
ADJUSTED EBIT,
RECONCILIATION TABLE
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
Six Months
Ending
|
|
|
December 31,
2015
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss)
attributable to ordinary shareholders
|
$ (682.0)
|
|
$ (517.0)
|
Plus:
|
|
|
|
|
|
Interest expense,
net
|
710.0
|
|
710.0
|
|
(Benefit) for income
taxes
|
(300.0)
|
|
(265.0)
|
EBIT
|
|
$ (272.0)
|
|
$ (72.0)
|
Adjusted
for:
|
|
|
|
|
Global supply chain
initiative
|
-
|
|
-
|
|
Acquisition and
licensing charges
|
1,015.0
|
|
1,015.0
|
|
Impairment/asset
sales and related costs
|
(10.0)
|
|
(10.0)
|
|
Non-recurring losses
(gains)
|
(5.0)
|
|
(5.0)
|
|
Legal
settlements
|
7.0
|
|
7.0
|
|
Amortization
|
3,050.0
|
|
3,050.0
|
|
Accretion on
contingent liabilities
|
15.0
|
|
15.0
|
Adjusted
EBIT
|
$ 3,800.0
|
|
$ 4,000.0
|
The following table presents a reconciliation of expected
adjusted earnings per share with expected GAAP earnings per share
for the six months ending December 31,
2015:
Table
2
|
|
|
ALLERGAN
PLC
|
NON GAAP EARNINGS,
RECONCILIATION TABLE
|
(Unaudited; in
millions except per share amounts)
|
|
|
|
|
|
|
|
Six Months
Ending
|
|
|
December 31,
2015
|
|
|
Low
|
|
High
|
GAAP to Non-GAAP
net income calculation
|
|
|
|
|
|
|
|
|
|
Reported GAAP net
(loss) attributable to ordinary shareholders
|
$ (682.0)
|
|
$ (517.0)
|
|
Adjusted
for:
|
|
|
|
|
Amortization
|
3,050.0
|
|
3,050.0
|
|
Global supply chain initiative
|
-
|
|
-
|
|
Acquisition and licensing charges *
|
975.0
|
|
975.0
|
|
Accretion on contingent liabilities
|
15.0
|
|
15.0
|
|
Impairment/asset sales and related costs
|
(10.0)
|
|
(10.0)
|
|
Non-recurring losses (gains)
|
(5.0)
|
|
(5.0)
|
|
Legal settlements
|
7.0
|
|
7.0
|
|
Income taxes on items above
|
(750.0)
|
|
(750.0)
|
|
Non-GAAP net income
attributable to
ordinary shareholders
|
$ 2,600.0
|
|
$ 2,765.0
|
|
|
|
|
|
Diluted earnings
per share
|
|
|
|
|
|
|
|
|
|
Diluted (loss) per
share - GAAP
|
$ (1.74)
|
|
$ (1.32)
|
|
|
|
|
|
|
Diluted earnings per
share - Non-GAAP
|
$ 6.25
|
|
$ 6.65
|
|
|
|
|
|
|
Basic weighted
average ordinary shares outstanding
|
392.0
|
|
392.0
|
|
Effect of dilutive
securities:
|
|
|
|
|
Dilutive
shares
|
24.0
|
|
24.0
|
|
Diluted weighted
average ordinary shares outstanding
|
416.0
|
|
416.0
|
|
|
|
|
|
|
* Includes non-gaap
interest expense, net.
|
|
|
|
CONTACTS:
|
Allergan:
|
|
Investors:
|
|
Lisa
DeFrancesco
|
|
(862)
261-7152
|
|
|
|
Media:
|
|
Mark
Marmur
|
|
(862)
261-7558
|
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visit:http://www.prnewswire.com/news-releases/allergan-announces-updated-second-half-2015-continuing-operations-financial-forecast-300150131.html
SOURCE Allergan plc