UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 28, 2015
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Commission
File Number |
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Exact name of registrant as
specified in its charter,
principal office and address
and telephone number |
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State of incorporation
or organization |
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I.R.S. Employer
Identification No. |
001-36867 |
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Allergan plc
Clonshaugh Business and Technology Park
Coolock, Dublin, D17 E400, Ireland
(862) 261-7000 |
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Ireland |
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98-1114402 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) |
Item 7.01 |
Regulation FD Disclosure. |
On September 28, 2015, Allergan plc issued a press release announcing
its updated second-half 2015 continuing operations financial forecast.
A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated
by reference herein.
The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed filed for
purposes of Section 18 of the Exchange Act of 1934, as amended (the Exchange Act), or as otherwise subject to liability of that section, nor shall such information be deemed to be incorporated by reference into any registration
statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits
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Exhibit |
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Description of Exhibit |
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Exhibit 99.1 |
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Press Release dated September 28, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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Date: September 30, 2015 |
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ALLERGAN PLC |
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By: |
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/s/ A. Robert D. Bailey |
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Name: |
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A. Robert D. Bailey |
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Title: |
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Chief Legal Officer and Corporate Secretary |
Exhibit Index
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Exhibit |
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Description of Exhibit |
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Exhibit 99.1* |
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Press Release dated September 28, 2015. |
* |
Exhibits filed herewith |
Exhibit 99.1
NEWS RELEASE
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CONTACTS: |
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Allergan: |
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Investors: |
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Lisa DeFrancesco |
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(862) 261-7152 |
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Media: |
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Mark Marmur |
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(862) 261-7558 |
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Allergan Announces Updated Second-Half 2015 Continuing Operations Financial Forecast
- Continued Strong Execution Positions Company for Continued Growth in 2015 and Expanded Growth in 2016 and Beyond
- Powerful Financial Profile and Strong Product Revenue Growth to Drive Long-Term Sustainable Performance
DUBLIN, IRELAND September 28, 2015 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.
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:
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Revenue is expected to be greater than $8 billion |
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Adjusted earnings before interest and taxes (EBIT) are expected to be between $3.8 billion and $4.0 billion |
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Non-GAAP earnings per share (EPS) are expected to be between $6.25 and $6.65 |
Allergans continuing
operations forecast for the second half of 2015 includes all of the companys 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:
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10% branded revenue growth |
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Non-GAAP gross margins of 77% to 79% with additional long-term expansion anticipated |
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Non-GAAP SG&A as a percentage of revenue between 21-24%, declining within that range over time |
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Non-GAAP tax rate of ~15% |
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Interest expense for New Allergan will be largely dependent on capital deployment decisions following the close of the transaction |
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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, womens health, urology, cardiovascular and anti-infective therapeutic categories, and operates the worlds 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 Allergans 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 Allergans 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 Allergans current expectations depending upon a number of factors affecting Allergans 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 Allergans products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergans periodic public filings with the Securities and Exchange Commission, including but not limited to
Allergans 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 Allergans
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)
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Six Months Ending |
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December 31, 2015 |
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Low |
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High |
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GAAP net (loss) attributable to ordinary shareholders |
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$ |
(682.0 |
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$ |
(517.0 |
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Plus: |
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Interest expense, net |
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710.0 |
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710.0 |
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(Benefit) / provision for income taxes |
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(300.0 |
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(265.0 |
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EBIT |
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$ |
(272.0 |
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$ |
(72.0 |
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Adjusted for: |
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Global supply chain initiative |
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Acquisition and licensing charges |
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1,015.0 |
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1,015.0 |
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Impairment/asset sales and related costs |
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(10.0 |
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(10.0 |
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Non-recurring losses (gains) |
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(5.0 |
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(5.0 |
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Legal settlements |
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7.0 |
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7.0 |
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Amortization |
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3,050.0 |
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3,050.0 |
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Accretion on contingent liabilities |
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15.0 |
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15.0 |
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Adjusted EBIT |
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$ |
3,800.0 |
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$ |
4,000.0 |
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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)
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Six Months Ending |
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December 31, 2015 |
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Low |
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High |
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GAAP to Non-GAAP net income calculation |
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Reported GAAP net (loss) attributable to ordinary shareholders |
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$ |
(682.0 |
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$ |
(517.0 |
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Adjusted for: |
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Amortization |
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3,050.0 |
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3,050.0 |
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Global supply chain initiative |
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Acquisition and licensing charges * |
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975.0 |
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975.0 |
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Accretion on contingent liabilities |
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15.0 |
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15.0 |
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Impairment/asset sales and related costs |
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(10.0 |
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(10.0 |
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Non-recurring losses (gains) |
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(5.0 |
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(5.0 |
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Legal settlements |
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7.0 |
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7.0 |
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Income taxes on items above |
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(750.0 |
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(750.0 |
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Non-GAAP net income attributable to ordinary shareholders |
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$ |
2,600.0 |
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$ |
2,765.0 |
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Diluted earnings per share |
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Diluted (loss) per share - GAAP |
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$ |
(1.74 |
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$ |
(1.32 |
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Diluted earnings per share - Non-GAAP |
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$ |
6.25 |
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$ |
6.65 |
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Basic weighted average ordinary shares outstanding |
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392.0 |
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392.0 |
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Effect of dilutive securities: |
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Dilutive shares |
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24.0 |
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24.0 |
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Diluted weighted average ordinary shares outstanding |
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416.0 |
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416.0 |
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* |
Includes non-gaap interest expense, net. |
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