Allergan today reported its fourth quarter and full-year 2017 continuing operations performance.
- Q4 2017 GAAP Continuing Operations Income Per Share of $9.97; Q4 Non-GAAP Performance Net Income Per Share of $4.86 -
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DUBLIN, Feb. 6, 2018 /PRNewswire/ -- Allergan (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 Q4 '17 Q4 '16 Q3 '17 Q4 '17 v Q4 Q4 '17 v Q3 Year Year 2017
per share amounts) '16 '17 Ended December Ended December v
31, 2017 31, 2016 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
Medical Aesthetics
Medical Dermatology
Neurosciences & Urology
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
Gastrointestinal
Women's Health
Anti-Infectives
Diversified Brands and Other Products
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
Eye Care
Botox Therapeutic
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
Regulatory Milestones & Clinical Updates
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
Share(1) $(2.27) - $(1.52) $15.25 - $16.00
------------ ---------------- ---------------
Average 2018
Share Count(2) ~ 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. The following presents Allergan plc's statement of operations for the three and twelve months ended December 31, 2017 and 2016:
Table 1
ALLERGAN PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Net revenues $4,326.1 $3,864.3 $15,940.7 $14,570.6
-------- -------- --------- ---------
Operating expenses:
Cost of sales (excludes amortization and impairment of 580.9 479.7 2,168.0 1,860.8
acquired intangibles including product rights)
Research and development 408.2 913.3 2,100.1 2,575.7
Selling, general and administrative 1,266.8 1,276.8 5,016.7 4,740.3
Amortization 1,922.2 1,638.5 7,197.1 6,470.4
In-process research and development impairments 207.0 427.0 1,452.3 743.9
Asset sales and impairments, net 31.5 29.0 3,927.7 5.0
---- ---- ------- ---
Total operating expenses 4,416.6 4,764.3 21,861.9 16,396.1
------- ------- -------- --------
Operating (loss) (90.5) (900.0) (5,921.2) (1,825.5)
----- ------ -------- --------
Non-operating income (expense):
Interest income 14.7 46.4 67.7 69.9
Interest (expense) (263.3) (292.7) (1,095.6) (1,295.6)
Other income (expense), net (70.7) 35.0 (3,437.3) 219.2
----- ---- -------- -----
Total other income (expense), net (319.3) (211.3) (4,465.2) (1,006.5)
------ ------ -------- --------
(Loss) before income taxes and noncontrolling interest (409.8) (1,111.3) (10,386.4) (2,832.0)
(Benefit) for income taxes (3,918.3) (1,071.2) (6,670.4) (1,897.0)
-------- -------- -------- --------
Net income / (loss) from continuing operations, net of tax 3,508.5 (40.1) (3,716.0) (935.0)
(Loss) / income from discontinued operations, net of tax (385.3) 41.3 (402.9) 15,914.5
------ ---- ------ --------
Net income / (loss) 3,123.2 1.2 (4,118.9) 14,979.5
------- --- -------- --------
(Income) attributable to noncontrolling interest (1.9) (1.8) (6.6) (6.1)
---- ---- ---- ----
Net income / (loss) attributable to shareholders 3,121.3 (0.6) (4,125.5) 14,973.4
------- ---- -------- --------
Dividends on preferred shares 69.6 69.6 278.4 278.4
---- ---- ----- -----
Net income / (loss) attributable to ordinary shareholders $3,051.7 $(70.2) $(4,403.9) $14,695.0
======== ====== ========= =========
Income / (loss) per share attributable to ordinary shareholders - basic:
Continuing operations $10.37 $(0.31) $(11.99) $(3.17)
Discontinued operations (1.16) 0.11 (1.20) 41.35
----- ---- ----- -----
Net income / (loss) per share - basic $9.21 $(0.20) $(13.19) $38.18
===== ====== ======= ======
Income / (loss) per share attributable to ordinary shareholders - diluted:
Continuing operations $9.97 $(0.31) $(11.99) $(3.17)
Discontinued operations (1.09) 0.11 (1.20) 41.35
----- ---- ----- -----
Net income / (loss) per share - diluted $8.88 $(0.20) $(13.19) $38.18
===== ====== ======= ======
Dividends per ordinary share $0.70 $ - $2.80 $ -
Weighted average shares outstanding:
Basic 331.3 356.8 333.8 384.9
===== ===== ===== =====
Diluted 351.6 356.8 333.8 384.9
===== ===== ===== =====
The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and twelve months ended December 31, 2017 and 2016.
Table 2
ALLERGAN PLC
NET REVENUES TOP GLOBAL PRODUCTS
(Unaudited; in millions)
Three Months Ended December 31, 2017 Three Months Ended December 31, 2016 Movement
------------------------------------ ------------------------------------ --------
US Specialized US General International Corporate Total US Specialized US General International Corporate Total Total Total Change
Therapeutics Medicine Therapeutics Medicine Percentage
Change
------
Botox(R) $612.4 $ - $251.9 $ - $864.3 $529.2 $ - $210.1 $ - $739.3 $125.0 16.9%
Restasis(R) 400.3 - 14.6 - 414.9 393.1 - 18.3 - 411.4 3.5 0.9%
Juvederm Collection** 139.5 - 154.7 - 294.2 121.6 - 116.2 - 237.8 56.4 23.7%
Linzess(R)/Constella(R) - 194.8 5.8 - 200.6 - 173.6 4.6 - 178.2 22.4 12.6%
Lumigan(R)/Ganfort(R) 80.9 - 99.7 - 180.6 86.0 - 92.5 - 178.5 2.1 1.2%
Bystolic(R) /Byvalson(R) - 157.5 0.6 - 158.1 - 159.8 0.4 - 160.2 (2.1) (1.3)%
Alphagan(R)/Combigan(R) 101.8 - 46.7 - 148.5 102.3 - 42.0 - 144.3 4.2 2.9%
Eye Drops 47.3 - 73.8 - 121.1 46.4 - 69.3 - 115.7 5.4 4.7%
Lo Loestrin(R) - 126.5 - - 126.5 - 107.5 - - 107.5 19.0 17.7%
Breast Implants 69.0 - 40.1 - 109.1 56.8 - 37.4 - 94.2 14.9 15.8%
Estrace(R) Cream - 101.5 - - 101.5 - 103.0 - - 103.0 (1.5) (1.5)%
Alloderm 97.9 - 2.5 - 100.4 - - - - - 100.4 n.a.
Namenda XR(R) - 97.8 - - 97.8 - 141.1 - - 141.1 (43.3) (30.7)%
Viibryd(R)/Fetzima(R) - 89.0 1.0 - 90.0 - 89.7 (0.1) - 89.6 0.4 0.4%
Vraylar(TM) - 87.7 - - 87.7 - 43.2 - - 43.2 44.5 103.0%
Ozurdex (R) 26.4 - 60.9 - 87.3 22.6 - 48.8 - 71.4 15.9 22.3%
Coolsculpting Consumables 51.9 - 15.3 - 67.2 - - - - - 67.2 n.a.
Carafate (R) /Sulcrate (R) - 59.2 0.8 - 60.0 - 61.3 0.7 - 62.0 (2.0) (3.2)%
Zenpep(R) - 58.5 - - 58.5 - 55.6 - - 55.6 2.9 5.2%
Asacol(R)/Delzicol(R) - 42.8 13.4 - 56.2 - 62.9 13.2 - 76.1 (19.9) (26.1)
Coolsculpting Systems & Add On Applicators 42.5 - 11.7 - 54.2 - - - - - 54.2 n.a.
Canasa(R)/Salofalk(R) - 47.0 5.0 - 52.0 - 43.7 4.7 - 48.4 3.6 7.4%
Aczone(R) 38.0 - 0.2 - 38.2 61.2 - - - 61.2 (23.0) (37.6)%
Armour Thyroid - 51.3 - - 51.3 - 44.7 - - 44.7 6.6 14.8%
Viberzi(R) - 42.9 0.2 - 43.1 - 38.0 - - 38.0 5.1 13.4%
Saphris(R) - 37.7 - - 37.7 - 43.2 - - 43.2 (5.5) (12.7)%
Namzaric(R) - 36.8 - - 36.8 - 19.5 - - 19.5 17.3 88.7%
Rapaflo(R) 28.2 - 1.8 - 30.0 29.0 - 1.6 - 30.6 (0.6) (2.0)%
Teflaro(R) - 29.2 - - 29.2 - 31.7 - - 31.7 (2.5) (7.9)%
SkinMedica(R) 24.7 - 2.3 - 27.0 26.8 - - - 26.8 0.2 0.7%
Savella(R) - 23.9 - - 23.9 - 29.1 - - 29.1 (5.2) (17.9)%
Avycaz(R) - 18.5 - - 18.5 - 9.2 - - 9.2 9.3 101.1%
Latisse(R) 15.9 - 2.1 - 18.0 23.2 - 2.3 - 25.5 (7.5) (29.4)%
Liletta(R) - 14.5 - - 14.5 - 8.3 - - 8.3 6.2 74.7%
Tazorac(R) 14.1 - 0.2 - 14.3 27.5 - 0.2 - 27.7 (13.4) (48.4)%
Dalvance(R) - 13.0 1.2 - 14.2 - 12.6 - - 12.6 1.6 12.7%
Kybella(R) /Belkyra(R) 12.1 - 1.7 - 13.8 12.0 - 0.7 - 12.7 1.1 8.7%
Lexapro(R) - 12.4 - - 12.4 - 15.8 - - 15.8 (3.4) (21.5)%
Minastrin(R) 24 - 5.3 - - 5.3 - 78.4 - - 78.4 (73.1) (93.2)%
Enablex(R) - 0.8 - - 0.8 - 2.4 - - 2.4 (1.6) (66.7)%
Namenda(R) IR - - - - - - 2.3 - - 2.3 (2.3) (100.0)%
Other Products Revenues 78.9 176.7 107.7 3.1 366.4 33.2 156.4 90.3 7.2 287.1 79.3 27.6%
Less product sold through our Anda Distribution
business n.a. n.a. n.a. - - n.a. n.a. n.a. - - - n.a.
---- ---- ---- --- --- ---- ---- ---- --- --- --- ----
Total Net Revenues $1,881.8 $1,525.3 $915.9 $3.1 $4,326.1 $1,570.9 $1,533.0 $753.2 $7.2 $3,864.3 $461.8 12.0%
======== ======== ====== ==== ======== ======== ======== ====== ==== ======== ====== ====
** Represents sales of all fillers including Juvederm and Voluma product lines.
Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Movement
------------------------------------- ------------------------------------- --------
US Specialized US General International Corporate Total US Specialized US General International Corporate Total Total Total Change
Therapeutics Medicine Therapeutics Medicine Percentage
Change
------
Botox(R) $2,254.4 $ - $914.5 $ - $3,168.9 $1,983.2 $ - $803.0 $ - $2,786.2 $382.7 13.7%
Restasis(R) 1,412.3 - 61.3 - 1,473.6 1,419.5 - 68.0 - 1,487.5 (13.9) (0.9)%
Juvederm Collection** 501.1 - 540.7 - 1,041.8 446.9 - 420.4 - 867.3 174.5 20.1%
Linzess(R)/Constella(R) - 701.1 21.9 - 723.0 - 625.6 17.3 - 642.9 80.1 12.5%
Lumigan(R)/Ganfort(R) 317.5 - 371.5 - 689.0 326.4 - 361.7 - 688.1 0.9 0.1%
Bystolic(R) /Byvalson(R) - 612.2 2.2 - 614.4 - 638.8 1.7 - 640.5 (26.1) (4.1)%
Alphagan(R)/Combigan(R) 377.3 - 175.1 - 552.4 376.6 - 169.3 - 545.9 6.5 1.2%
Eye Drops 199.5 - 281.0 - 480.5 186.5 - 276.2 - 462.7 17.8 3.8%
Lo Loestrin(R) - 459.3 - - 459.3 - 403.5 - - 403.5 55.8 13.8%
Namenda XR(R) - 452.8 - - 452.8 - 627.6 - - 627.6 (174.8) (27.9)%
Breast Implants 242.6 - 156.9 - 399.5 206.0 - 149.9 - 355.9 43.6 12.3%
Estrace(R) Cream - 366.6 - - 366.6 - 379.4 - - 379.4 (12.8) (3.4)%
Viibryd(R)/Fetzima(R) - 333.2 3.1 - 336.3 - 342.3 - - 342.3 (6.0) (1.8)%
Alloderm 321.2 - 7.5 - 328.7 - - - - - 328.7 n.a.
Ozurdex (R) 98.4 - 213.4 - 311.8 84.4 - 179.0 - 263.4 48.4 18.4%
Vraylar(TM) - 287.8 - - 287.8 - 94.3 - - 94.3 193.5 n.m.
Asacol(R)/Delzicol(R) - 195.5 50.2 - 245.7 - 360.8 53.7 - 414.5 (168.8) (40.7)%
Carafate (R) /Sulcrate (R) - 235.8 2.9 - 238.7 - 229.0 2.4 - 231.4 7.3 3.2%
Zenpep(R) - 212.3 - - 212.3 - 200.7 - - 200.7 11.6 5.8%
Coolsculpting Consumables 150.1 - 41.6 - 191.7 - - - - - 191.7 n.a.
Canasa(R)/Salofalk(R) - 162.7 18.3 - 181.0 - 178.7 17.7 - 196.4 (15.4) (7.8)%
Armour Thyroid - 169.1 - - 169.1 - 166.5 - - 166.5 2.6 1.6%
Aczone(R) 166.3 - 0.5 - 166.8 217.3 - - - 217.3 (50.5) (23.2)%
Viberzi(R) - 156.6 0.5 - 157.1 - 93.3 - - 93.3 63.8 68.4%
Saphris(R) - 155.2 - - 155.2 - 166.8 - - 166.8 (11.6) (7.0)%
Coolsculpting Systems & Add On
Applicators 106.6 - 32.1 - 138.7 - - - - - 138.7 n.a.
Namzaric(R) - 130.8 - - 130.8 - 57.5 - - 57.5 73.3 127.5%
Teflaro(R) - 121.9 - - 121.9 - 133.6 - - 133.6 (11.7) (8.8)%
Rapaflo(R) 108.1 - 7.3 - 115.4 116.6 - 5.8 - 122.4 (7.0) (5.7)%
SkinMedica(R) 96.8 - 3.7 - 100.5 108.3 - - - 108.3 (7.8) (7.2)%
Savella(R) - 98.2 - - 98.2 - 103.2 - - 103.2 (5.0) (4.8)%
Tazorac(R) 65.4 - 0.7 - 66.1 95.5 - 0.8 - 96.3 (30.2) (31.4)%
Latisse(R) 56.4 - 8.3 - 64.7 77.9 - 8.5 - 86.4 (21.7) (25.1)%
Minastrin(R) 24 - 61.4 - - 61.4 - 325.9 1.4 - 327.3 (265.9) (81.2)%
Avycaz(R) - 61.2 - - 61.2 - 36.1 - - 36.1 25.1 69.5%
Kybella(R) /Belkyra(R) 49.5 - 6.8 - 56.3 50.2 - 2.3 - 52.5 3.8 7.2%
Dalvance(R) - 53.9 2.4 - 56.3 - 39.3 - - 39.3 17.0 43.3%
Lexapro(R) - 51.8 - - 51.8 - 66.6 - - 66.6 (14.8) (22.2)%
Liletta(R) - 37.6 - - 37.6 - 23.3 - - 23.3 14.3 61.4%
Enablex(R) - 3.6 - - 3.6 - 17.1 - - 17.1 (13.5) (78.9)%
Namenda(R) IR - 0.1 - - 0.1 - 15.1 - - 15.1 (15.0) (99.3)%
Other Products Revenues 280.1 675.5 395.1 21.4 1,372.1 116.4 598.9 342.2 33.7 1,091.2 280.9 25.7%
Less product sold through our Anda
Distribution business n.a. n.a. n.a. - - n.a. n.a. n.a. (80.0) (80.0) 80.0 (100.0)%
Total Net Revenues $6,803.6 $5,796.2 $3,319.5 $21.4 $15,940.7 $5,811.7 $5,923.9 $2,881.3 $(46.3) $14,570.6 $1,370.1 9.4%
The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of December 31, 2017 and December 31,
2016.
Table 3
ALLERGAN PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
December 31, December 31,
2017 2016
---- ----
Assets
Cash and cash equivalents $1,817.2 $1,724.0
Marketable securities 4,632.1 11,501.5
Accounts receivable, net 2,899.0 2,531.0
Inventories 904.5 718.0
Prepaid expenses and other
current assets 1,123.9 1,383.4
Assets held for sale 81.6 27.0
Property, plant and equipment,
net 1,785.4 1,611.3
Investments and other assets 587.0 515.4
Product rights and other
intangibles 54,648.3 62,618.6
Goodwill 49,862.9 46,356.1
-------- --------
Total assets $118,341.9 $128,986.3
========== ==========
Liabilities & Equity
Current liabilities $5,616.3 $5,076.8
Current and long-term debt and
capital leases 30,075.3 32,768.7
Deferred income taxes and other
liabilities 8,813.2 14,940.3
Total equity 73,837.1 76,200.5
-------- --------
Total liabilities and equity $118,341.9 $128,986.3
========== ==========
The following table presents Allergan plc's Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2017 and 2016.
Table 4
ALLERGAN PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
Cash Flows From Operating Activities:
Net income / (loss) $3,123.2 $1.2 $(4,118.9) $14,979.5
-------- ---- --------- ---------
Reconciliation to net cash provided by operating activities:
Depreciation 48.3 38.2 171.5 155.8
Amortization 1,922.2 1,638.5 7,197.1 6,475.2
Provision for inventory reserve 24.9 18.7 102.2 181.4
Share-based compensation 72.5 64.6 293.3 334.5
Deferred income tax benefit (4,577.8) (926.8) (7,783.1) (1,443.9)
Pre-tax gain on sale of businesses to Teva - (308.0) - (24,511.1)
Non-cash tax effect of gain on sale of businesses to Teva - (464.7) - 5,285.2
In-process research and development impairments 207.0 427.0 1,452.3 743.9
Loss on asset sales and impairments, net 31.5 29.0 3,927.7 5.0
Net income impact of other-than-temporary loss on investment in Teva securities - - 3,273.5 -
Charge to settle Teva related matters, net of tax 387.4 - 387.4 -
Loss on forward sale of Teva shares 62.9 - 62.9 -
Amortization of inventory step up 5.5 - 131.7 42.4
Non-cash extinguishment of debt (7.5) - (15.7) -
Amortization of deferred financing costs 8.2 6.4 27.8 51.0
Contingent consideration adjustments, (81.6) (143.5) (133.2) (66.8)
including accretion
Other, net (18.8) (43.9) (37.0) (59.9)
Changes in assets and liabilities (net of effects
of acquisitions):
Decrease / (increase) in accounts receivable, net (49.8) (150.6) (188.3) (191.0)
Decrease / (increase) in inventories (37.1) (46.8) (144.8) (268.4)
Decrease / (increase) in prepaid expenses (17.9) (129.0) 27.9 29.9
and other current assets
Increase / (decrease) in accounts payable 452.2 (18.4) 95.9 313.5
and accrued expenses
Increase / (decrease) in income and other 468.0 (195.0) 1,114.1 (326.6)
taxes payable
Increase / (decrease) in other assets and liabilities 25.1 113.6 29.1 (283.9)
---- ----- ---- ------
Net cash provided by / (used in) operating activities 2,048.4 (89.5) 5,873.4 1,445.7
------- ----- ------- -------
Cash Flows From Investing Activities:
Additions to property, plant and equipment (115.9) (80.9) (349.9) (331.4)
Additions to product rights and other intangibles (10.0) (2.0) (614.3) (2.0)
Sale of businesses to Teva - 499.7 - 33,804.2
Additions to investments (1,350.0) (298.0) (9,783.8) (15,743.5)
Proceeds from sale of investments and other assets 678.9 7,731.6 15,153.3 7,771.6
Proceeds from sales of property, plant and equipment 1.3 - 7.1 33.3
Acquisitions of businesses, net of cash acquired - (1,124.4) (5,290.4) (1,198.9)
--- -------- -------- --------
Net cash (used in) / provided by (795.7) 6,726.0 (878.0) 24,333.3
investing activities
Cash Flows From Financing Activities:
Proceeds from borrowings on long-term indebtedness, including credit facility 525.0 - 3,550.0 1,050.0
Debt issuance and other financing costs (3.1) - (20.6) -
Payments on debt, including capital lease obligations (834.4) (17.7) (6,413.6) (10,848.7)
Proceeds from stock plans 16.2 34.1 183.4 172.1
Other financing, including contingent consideration 3.6 (83.4) (511.6) (161.1)
Repurchase of ordinary shares (456.6) (12,317.8) (493.0) (15,076.4)
Dividends (301.2) (69.6) (1,218.2) (278.4)
------ ----- -------- ------
Net cash (used in) financing activities (1,050.5) (12,454.4) (4,923.6) (25,142.5)
-------- --------- -------- ---------
Effect of currency exchange rate changes on cash 2.3 (12.8) 21.4 (8.5)
and cash equivalents
Net increase / (decrease) in cash and cash equivalents 204.5 (5,830.7) 93.2 628.0
Cash and cash equivalents at beginning of period 1,612.7 7,554.7 1,724.0 1,096.0
------- ------- ------- -------
Cash and cash equivalents at end of period $1,817.2 $1,724.0 $1,817.2 $1,724.0
======== ======== ======== ========
Non-GAAP performance net income per share is used by management as one of the primary metrics in evaluating the Company's performance. We believe that Non-GAAP performance net income per share enhances the comparability of our results between periods and provides additional information and transparency to investors on adjustments and other items that are not indicative of the Company's current and future operating performance. These are the financial measures used by our management team to evaluate our operating performance and make day to day operating decisions. We define non-GAAP adjustments to the reported
GAAP measures as GAAP results adjusted for the following net of tax: (i) amortization expenses, (ii) global supply chain and operational excellence initiatives or other restructurings of a similar nature, (iii) acquisition, divestiture, integration and licensing charges, (iv) accretion and fair market value adjustments on contingent liabilities, (v) impairment/asset sales and related costs, including the exclusion of discontinued operations, (vi) legal settlements and (vii) other unusual charges or expenses. Non-GAAP performance net income per share is not, and should not be viewed as, a substitute for reported
GAAP continuing operations loss per share. The Company has consistently excluded amortization of all intangible assets, including the product rights that generate a significant portion of our ongoing revenue. The Company's total accumulated amortization, including impairments of currently marketed products, related to our intangible assets as of December 31, 2017 and December 31, 2016 was $25.8 billion and $14.6 billion, respectively, and is expected to continue to be a material non-GAAP adjustment. The following table presents Allergan plc's GAAP to Non-GAAP adjustments for the three and twelve months ended
December 31, 2017 and 2016:
Table 5
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Three Months Ended December 31, 2017
Net COGS Research & Selling & General & Amortization Asset sales Interest Other Income
Revenue Development Marketing Administrative and expense, income taxes
Impairments, net (expense)
net
GAAP $4,326.1 $580.9 $408.2 $877.7 $389.1 $1,922.2 $238.5 $(248.6) $(70.7) $(3,918.3)
Impact of selling through purchase accounting mark-up - (5.5) - - - - - - - -
on acquired inventory
Purchase accounting impact on stock-based compensation - (1.3) (3.8) (6.7) (3.2) - - - - -
for acquired awards
Severance due to integration of acquired entities - - - (0.8) (0.6) - - - - -
Non-acquisition related severance and restructuring related - (7.7) (18.2) (56.5) (23.5) - (17.7) - - -
to the December 2017 restructuring program
Other non-acquisition related severance and restructuring - (8.7) - 0.4 0.6 - - - - -
Costs associated with disposed businesses - (2.3) - (0.1) (2.3) - - - - -
Integration charges of acquired businesses - - (0.9) 0.2 (18.9) - - - - -
Brand related milestones and upfront expenses for asset
acquisitions
Other - - (5.3) - - - - - - -
Accretion and fair-value adjustments to contingent - 55.9 25.7 - - - - - - -
consideration
Net income impact of determining that the loss on - - - - - - - - - -
investment of Teva securities is other-than-temporary
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (6.4) - -
Impairment of IPR&D products acquired in the Allergan Acquisition - - - - - - (207.0) - - -
Asset sales and impairments, other - - - - - - (13.8) - - -
Impact of debt refinancing - - - - - - - - 27.6 -
Loss on forward sale of Teva shares - - - - - - - - 62.9 -
Litigation settlement related charges - - - - (22.2) - - - - -
Other adjustments - - - 1.0 (1.4) (1,922.2) - - (11.4) -
Income taxes on pre-tax adjustments - - - - - - - - - 567.6
Discrete income tax events - - - - - - - - - 3,570.2
Non-GAAP Adjusted $4,326.1 $611.3 $405.7 $815.2 $317.6 $ - $ - $(255.0) $8.4 $219.5
======== ====== ====== ====== ====== === === === === ======= ==== ======
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Three Months Ended December 31, 2016
Net COGS Research & Selling & General &
Development Marketing Administrative Amortization Asset sales Interest Other Income
Revenue and expense, income taxes
Impairments, net (expense)
net
GAAP $3,864.3 $479.7 $913.3 $836.8 $440.0 $1,638.5 $456.0 $(246.3) $35.0 $(1,071.2)
Expenditures incurred with the Pfizer transaction - (1.3) (2.7) (31.5) (4.9) - - - - -
Purchase accounting impact on stock-based compensation for acquired awards - (1.7) (22.0) (10.1) (44.8) - - - - -
Severance due to integration of acquired entities and other restructuring programs - (0.4) (4.6) (11.8) (8.6) - - - - -
Integration charges of acquired businesses - (5.3) (2.4) (1.2) (54.3) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
AstraZeneca plc - - (250.0) - - - - - - -
Chase Pharmaceuticals Corporation - - (122.9) - - - - - - -
Motus Therapeutics, Inc. - - (199.5) - - - - - - -
Urogen license agreement - - (17.5) - - - - - - -
Other adjustments - - (2.7) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - 30.8 136.9 - (24.2) - - - - -
Mark-to-market adjustments for foreign currency option contracts - - - - 9.5 - - - - -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (10.4) - -
Abandonment and decrease in realization of certain R&D projects acquired in the Allergan acquisition - - - - - - (348.0) - - -
Decrease in realization of certain R&D projects acquired in the Vitae acquisition - - - - - - (46.0) - - -
Decrease in realization of certain R&D projects acquired in the ForSight acquisition - - - - - - (33.0) - - -
Asset sales and impairments, other - - - - - - (29.0) - - -
Litigation settlement related charges - - - - (17.3) - - - - -
Other adjustments - - - - (10.6) (1,638.5) - - - -
Income taxes on pre-tax adjustments - - - - - - - - - 869.9
Discrete income tax events - - - - - - - - - 372.3
Non-GAAP Adjusted $3,864.3 $501.8 $425.9 $782.2 $284.8 $ - $ - $(256.7) $35.0 $171.0
======== ====== ====== ====== ====== === === === === ======= ===== ======
The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the three months ended December 31, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.
The non-GAAP effective tax rate for the three months ended December 31, 2017 excludes discrete tax benefits of approximately $2.8 billion related to the impacts of recently enacted U.S. tax law changes, approximately $710 million related to certain temporary differences expected to reverse at tax rates different than what was originally recorded and approximately $55 million related to individually insignificant items.
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Twelve Months Ended December 31, 2017
Net Revenue COGS Research & Selling & General & Amortization Asset sales and Interest Other income
Development Marketing Administrative Impairments, expense, net (expense)
net Income taxes
GAAP $15,940.7 $2,168.0 $2,100.1 $3,514.8 $1,501.9 $7,197.1 $5,380.0 $(1,027.9) $(3,437.3) $(6,670.4
Impact of selling through purchase accounting mark-up on - (131.7) - - - - - - - -
acquired inventory
Expenditures incurred with the Pfizer transaction - (2.0) (2.4) (5.6) (10.5) - - - - -
Purchase accounting impact on stock-based compensation - (4.6) (18.3) (33.1) (49.0) - - - - -
for acquired awards
Severance due to integration of acquired entities - (0.5) (3.0) (19.5) (17.3) - - - - -
Non-acquisition related severance and restructuring related (7.7) (18.2) (56.5) (23.5) - (17.7) - - -
to the December 2017 restructuring program
Other non-acquisition related severance and restructuring - (53.8) (15.1) (24.3) (9.3) - - - - -
Costs associated with disposed businesses - (4.9) - (0.3) (16.0) - - - - -
Integration charges of acquired businesses - (0.6) (3.2) (4.1) (95.0) - - - - -
Brand related milestones and upfront expenses for asset
acquisitions
Assembly Biosciences, Inc. - - (50.0) - - - - - - -
Lysosomal Therapeutics, Inc. - - (145.0) - - - - - - -
Editas Medicine Inc. - - (90.0) - - - - - - -
Akarna Therapeutics, Ltd. - - (39.6) - - - - - - -
Heptares Therapeutics Ltd. - - (15.0) - - - - - - -
Lyndra, Inc. - - (15.0) - - - - - - -
Other - - (37.2) - - - - - - -
Accretion and fair-value adjustments to contingent - 183.2 (50.0) - - - - - - -
consideration
Net income impact of determining that the loss on - - - - - - - - 3,273.5 -
investment of Teva securities is other-than-temporary
Non-cash amortization of debt premium recognized in - - - - - - - (33.2) - -
purchase accounting
Termination of agreement for SER-120 - - - - - - (147.4) - - -
Impairment of Restasis intangible assets and dry eye - - - - - - (3,394.0) - - -
IPR&D projects acquired in the Allergan acquisition
Impairment of Aczone intangible assets - - - - - - (646.0) - - -
Impairment of IPR&D products acquired in the Allergan Acquisition - - - - - - (774.0) - - -
Decrease in realization of certain R&D projects acquired in the Uteron acquisition - - - - - - (91.3) - - -
Decrease in realization of certain R&D projects acquired in the Warner Chilcott acquisition - - - - - - (278.0) - - -
Asset sales and impairments, other - - - - - - (31.6) - - -
Settlement of Naurex, Inc. agreement - - - - - - - - (20.0) -
Loss on forward sale of Teva shares - - - - - - - - 62.9 -
Impact of debt refinancing - - - - (12.6) - - - 189.1 -
Litigation settlement related charges - - - - (96.5) - - - - -
Other adjustments - (12.5) 0.7 (0.5) 11.7 (7,197.1) - - (5.4) -
Income taxes on pre-tax adjustments - - - - - - - - - 3,717.9
Discrete income tax events - - - - - - - - - 3,790.9
Non-GAAP Adjusted $15,940.7 $2,132.9 $1,598.8 $3,370.9 $1,183.9 $ - $ - $(1,061.1) $62.8 $838.4
========= ======== ======== ======== ======== === === === === ========= ===== ======
ALLERGAN PLC
GAAP TO NON-GAAP ADJUSTMENTS
(Unaudited; in millions)
Twelve Months Ended December 31, 2016
Net Revenue COGS Research & Selling & General & Amortization Asset sales and Interest Other income
Development Marketing Administrative Impairments, expense, net (expense)
net Income taxes
GAAP $14,570.6 $1,860.8 $2,575.7 $3,266.4 $1,473.9 $6,470.4 $748.9 $(1,225.7) $219.2 $(1,897.0)
Impact of selling through purchase accounting mark-up on acquired inventory - (42.4) - - - - - - - -
Expenditures incurred with the Pfizer transaction - (4.8) (8.4) (57.7) (62.4) - - - (150.0) -
Purchase accounting impact on stock-based compensation for acquired awards - (8.1) (53.8) (65.4) (80.5) - - - - -
Severance due to integration of acquired entities and other restructuring programs - (4.0) (11.3) (19.8) (26.4) - - - - -
Integration charges of acquired businesses - (14.2) 1.0 (4.9) (180.8) - - - - -
Brand related milestones and upfront expenses for asset acquisitions
Topokine Therapeutics, Inc. - - (85.8) - - - - - - -
Anterios, Inc. - - (89.2) - - - - - - -
Retrosense Therapeutics, LLC - - (59.7) - - - - - - -
Akarna Therapeutics, Ltd. - - (48.2) - - - - - - -
AstraZeneca plc - - (250.0) - - - - - - -
Chase Pharmaceuticals Corporation - - (122.9) - - - - - - -
Motus Therapeutics, Inc. - - (199.5) - - - - - - -
Urogen license agreement - - (17.5) - - - - - - -
Merck license agreement - - (100.0) - - - - - - -
Heptares Therapeutics Ltd. - - (125.0) - - - - - - -
Other - - (36.9) - - - - - - -
Accretion and fair-value adjustments to contingent consideration - 17.4 71.1 - (24.3) - - - - -
Mark-to-market adjustments for foreign currency option contracts - - - - (8.9) - - - - -
Non-cash amortization of debt premium recognized in purchase accounting - - - - - - - (51.0) - -
Women's healthcare portfolio product impairment - - - - - - (24.0) - - -
Abandonment of certain R&D projects acquired in the Allergan acquisition - - - - - - (592.9) - - -
Decrease in realization of certain R&D projects acquired in the Vitae acquisition - - - - - - (46.0) - - -
Decrease in realization of certain R&D projects acquired in the ForSight acquisition - - - - - - (33.0) - - -
Abandonment of certain R&D projects acquired in the Forest acquisition - - - - - - (42.0) - - -
Asset sales and impairments, other - - - - - - (11.0) - - -
Litigation settlement related charges - - - - (117.3) - - - - -
Other adjustments - - (5.8) (0.1) (10.1) (6,470.4) - - - -
Income taxes on pre-tax adjustments - - - - - - - - - 2,132.2
Discrete income tax events - - - - - - - - - 300.0
Non-GAAP Adjusted $14,570.6 $1,804.7 $1,433.8 $3,118.5 $963.2 $ - $ - $(1,276.7) $69.2 $535.2
========= ======== ======== ======== ====== === === === === ========= ===== ======
The non-GAAP income tax expense is determined based on our pre-tax income adjusted for non-GAAP items on a jurisdiction by jurisdiction basis. The non-GAAP effective tax rate for the twelve months ended December 31, 2017 was impacted by U.S. income taxed at rates higher than the Irish statutory rate, partially offset by income earned in jurisdictions with tax rates lower than the Irish statutory rate.
The non-GAAP effective tax rate for the twelve months ended December 31, 2017 excludes discrete tax benefits of approximately $2.8 billion related to the impacts of recently enacted U.S. tax law changes, approximately $710 million related to certain temporary differences expected to reverse at tax rates different than what was originally recorded and approximately $285 million related to individually insignificant items.
The following table presents a reconciliation of Allergan plc's reported net income /(loss) from continuing operations attributable to shareholders and diluted earnings per share to non-GAAP performance net income and non-GAAP performance net income per share for the three and twelve months ended December 31,
2017 and 2016:
Table 6
ALLERGAN PLC
RECONCILIATION TABLE
(Unaudited; in millions except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
GAAP to Non-GAAP Performance net income
calculation
GAAP income / (loss) from continuing operations $3,506.6 $(41.9) $(3,722.6) $(941.1)
attributable to shareholders
Adjusted for:
Amortization 1,922.2 1,638.5 7,197.1 6,470.4
Acquisition, divestiture and licensing charges(1) 108.4 800.4 4,083.4 1,593.6
Accretion and fair-value adjustments to (81.6) (143.5) (133.2) (64.2)
contingent consideration
Impairment/asset sales and related costs 238.5 456.0 5,380.0 748.9
Non-recurring losses / (gains) 16.2 (9.5) 210.1 8.9
Non-acquisition restructurings, including Global 113.6 - 208.4 -
Supply Chain initiatives
Legal settlements 22.2 17.3 96.5 117.3
Income taxes on items above and other discrete (4,137.8) (1,242.2) (7,508.8) (2,432.2)
income tax adjustments
Non-GAAP performance net income attributable to shareholders $1,708.3 $1,475.1 $5,810.9 $5,501.6
======== ======== ======== ========
Diluted earnings per share
Diluted income / (loss) per share from continuing $9.97 $(0.12) $(11.15) $(2.45)
operations attributable to shareholders- GAAP
Non-GAAP performance net income per share attributable to shareholders $4.86 $3.90 $16.35 $13.51
===== ===== ====== ======
Basic weighted average ordinary shares outstanding 331.3 356.8 333.8 384.9
Effect of dilutive securities:
Dilutive shares 20.3 21.8 21.6 22.3
---- ---- ---- ----
Diluted weighted average ordinary shares outstanding 351.6 378.6 355.4 407.2
===== ===== ===== =====
(1) Includes stock-based compensation primarily due to the Zeltiq, Allergan and Forest acquisitions as well as the valuation accounting impact in interest expense, net.
We define adjusted EBITDA as an amount equal to consolidated net income /(loss) from continuing operations attributable to shareholders for such period adjusted for the following: (i) interest expense, (ii) interest income, (iii) (benefit) for income taxes, (iv) depreciation and amortization expenses,
(v) stock-based compensation expense, (vi) asset impairment charges and losses /(gains) and expenses associated with the sale of assets, including the exclusion of discontinued operations, (vii) business restructuring charges associated with Allergan's global supply chain and operational excellence
initiatives or other restructurings of a similar nature, (viii) costs and charges associated with the acquisition and divestitures of businesses and assets including, but not limited to, milestone payments, integration charges, other charges associated with the revaluation of assets or liabilities and
charges associated with the revaluation of acquisition related contingent liabilities that are based in whole or in part on future estimated cash flows, (ix) litigation charges and settlements and (x) other unusual charges or expenses. We define non-GAAP adjusted operating income as adjusted EBITDA
including depreciation and certain stock-based compensation charges and excluding dividend income and other-than-temporary investment impairments included within other income (expense), net.
The following table presents a reconciliation of Allergan plc's reported net income / (loss) from continuing operations attributable to shareholders for the three and twelve months ended December 31, 2017 and 2016 to adjusted EBITDA and adjusted operating income:
Table 7
ALLERGAN PLC
ADJUSTED EBITDA and ADJUSTED OPERATING INCOME, RECONCILIATION TABLE
(Unaudited; in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
GAAP income / (loss) from continuing operations $3,506.6 $(41.9) $(3,722.6) $(941.1)
attributable to shareholders
Plus:
Interest expense 263.3 292.7 1,095.6 1,295.6
Interest income (14.7) (46.4) (67.7) (69.9)
(Benefit) for income taxes (3,918.3) (1,071.2) (6,670.4) (1,897.0)
Depreciation 48.3 38.2 171.5 152.7
Amortization 1,922.2 1,638.5 7,197.1 6,470.4
------- ------- ------- -------
EBITDA $1,807.4 $809.9 $(1,996.5) $5,010.7
-------- ------ --------- --------
Adjusted for:
Acquisition, divestiture and licensing charges 95.7 732.2 4,007.5 1,436.8
Impairment/asset sales and related costs 238.5 456.0 5,380.0 748.9
Non-recurring (gain) / losses 16.2 (9.5) 210.1 8.9
Non-acquisition restructurings, including Global 113.6 - 208.4 -
Supply Chain initiatives
Legal settlements 22.2 17.3 96.5 117.3
Accretion and fair-value adjustments to contingent (81.6) (143.5) (133.2) (64.2)
consideration
Share-based compensation including cash 72.5 113.3 324.8 370.3
settlements
Adjusted EBITDA $2,284.5 $1,975.7 $8,097.6 $7,628.7
-------- -------- -------- --------
Adjusted for:
Depreciation (48.3) (38.2) (171.5) (152.7)
Dividend income (8.5) (34.1) (85.2) (68.2)
Other-than-temporary security impairments - - 22.3 -
Share-based compensation not related to (53.4) (34.7) (215.7) (162.5)
restructuring charges and purchase accounting
impact on stock-based compensation for acquired
awards
Adjusted Operating Income $2,174.3 $1,868.7 $7,647.5 $7,245.3
======== ======== ======== ========
The following table details Allergan plc's segment contribution reconciled to the non-GAAP contribution for the same financial statement line items for the three and twelve months ended December 31, 2017 and 2016.
Table 8
ALLERGAN PLC
Segment Contribution to Non-GAAP Allergan plc Contribution
(Unaudited; $ in millions)
Three Months Ended December 31, 2017 Three Months Ended December 31, 2016
------------------------------------ ------------------------------------
US Specialized US General International Corporate Total Company US Specialized US General International Corporate Total Company
Therapeutics Medicine Segment Segment Therapeutics Medicine Segment Segment
Segment Segment
------- -------
Net revenues $1,881.8 $1,525.3 $915.9 $3.1 $4,326.1 $1,570.9 $1,533.0 $753.2 $7.2 $3,864.3
-------- -------- ------ ---- -------- -------- -------- ------ ---- --------
Operating expenses:
Cost of sales(1) 146.0 220.7 137.1 107.5 611.3 75.9 230.2 108.9 86.8 501.8
Selling and marketing 328.8 245.8 240.6 - 815.2 292.2 282.9 205.5 1.6 782.2
General and administrative 58.8 47.6 34.1 177.1 317.6 47.8 46.7 30.7 159.6 284.8
---- ---- ---- ----- ----- ---- ---- ---- ----- -----
Segment contribution $1,348.2 $1,011.2 $504.1 $(281.5) $2,582.0 $1,155.0 $973.2 $408.1 $(240.8) $2,295.5
======== ======== ====== ======= ======== ======== ====== ====== ======= ========
Segment margin 71.6% 66.3% 55.0% n.m. 59.7% 73.5% 63.5% 54.2% n.m. 59.4%
Segment gross margin(2) 92.2% 85.5% 85.0% n.m. 85.9% 95.2% 85.0% 85.5% n.m. 87.0%
(1) Excludes amortization and impairment of acquired intangibles including product rights.
(2) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016
------------------------------------- -------------------------------------
US Specialized International International
Therapeutics Segment Segment
Segment US General Medicine Corporate Total US US General Medicine Corporate Total
Segment Company Specialized
Therapeutics
Segment Segment Company
------- ------- ------------ ------- -------
Net revenues (1) $6,803.6 $5,796.2 $3,319.5 $21.4 $15,940.7 $5,811.7 $5,923.9 $2,881.3 $(46.3) $14,570.6
-------- -------- -------- ----- --------- -------- -------- -------- ------ ---------
Operating expenses:
Cost of sales(1)(2) 495.4 843.9 478.7 314.9 2,132.9 290.9 879.8 418.2 215.8 1,804.7
Selling and marketing 1,369.5 1,084.1 913.8 3.5 3,370.9 1,137.0 1,185.7 788.2 7.6 3,118.5
General and administrative 208.2 177.3 120.6 677.8 1,183.9 174.2 174.9 117.2 496.9 963.2
----- ----- ----- ----- ------- ----- ----- ----- ----- -----
Segment contribution $4,730.5 $3,690.9 $1,806.4 $(974.8) $9,253.0 $4,209.6 $3,683.5 $1,557.7 $(766.6) $8,684.2
======== ======== ======== ======= ======== ======== ======== ======== ======= ========
Segment margin 69.5% 63.7% 54.4% n.m. 58.0% 72.4% 62.2% 54.1% n.m. 59.6%
Segment gross margin(3) 92.7% 85.4% 85.6% n.m. 86.6% 95.0% 85.1% 85.5% n.m. 87.6%
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers for the US Specialized Therapeutics Segment and the US General Medicine Segment in the twelve months ended December 31, 2016 of $80.0 million, which are reclassified to discontinued operations through Corporate. The corresponding reclassification recorded in cost of goods sold was $78.2 million in the twelve months ended December 31, 2016.
(2) Excludes amortization and impairment of acquired intangibles including product rights.
(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.
The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and twelve months ended December 31, 2017 and 2016.
Table 9
ALLERGAN PLC
US Specialized Therapeutics Product Revenue
(Unaudited; in millions)
Three Months Ended December 31, Change
------------------------------- ------
2017 2016 Dollars %
---- ---- ------- ---
Total Eye Care $671.7 $660.1 $11.6 1.8%
Restasis(R) 400.3 393.1 7.2 1.8%
Alphagan(R)/Combigan(R) 101.8 102.3 (0.5) (0.5)%
Lumigan(R)/Ganfort(R) 80.9 86.0 (5.1) (5.9)%
Ozurdex(R) 26.4 22.6 3.8 16.8%
Eye Drops 47.3 46.4 0.9 1.9%
Other Eye Care 15.0 9.7 5.3 54.6%
Total Medical Aesthetics 712.9 440.3 272.6 61.9%
Facial Aesthetics 380.0 333.0 47.0 14.1%
Botox(R) Cosmetics 228.4 199.4 29.0 14.5%
Juvederm Collection 139.5 121.6 17.9 14.7%
Kybella(R) 12.1 12.0 0.1 0.8%
Plastic Surgery 69.0 57.3 11.7 20.4%
Breast Implants 69.0 56.8 12.2 21.5%
Other Plastic Surgery - 0.5 (0.5) (100.0)%
Regenerative Medicine 128.9 - 128.9 n.a.
Alloderm(R) 97.9 - 97.9 n.a.
Other Regenerative Medicine 31.0 - 31.0 n.a.
Body Contouring 94.4 - 94.4 n.a.
Coolsculpting(R) Systems & Add On Applicators 42.5 - 42.5 n.a.
Coolsculpting(R) Consumables 51.9 - 51.9 n.a.
Skin Care 40.6 50.0 (9.4) (18.8)%
SkinMedica(R) 24.7 26.8 (2.1) (7.8)%
Latisse(R) 15.9 23.2 (7.3) (31.5)%
Total Medical Dermatology 85.5 114.3 (28.8) (25.2)%
Aczone(R) 38.0 61.2 (23.2) (37.9)%
Tazorac(R) 14.1 27.5 (13.4) (48.7)%
Botox(R) Hyperhidrosis 16.8 16.3 0.5 3.1%
Other Medical Dermatology 16.6 9.3 7.3 78.5%
Total Neuroscience & Urology 395.4 342.5 52.9 15.4%
Botox(R) Therapeutics 367.2 313.5 53.7 17.1%
Rapaflo(R) 28.2 29.0 (0.8) (2.8)%
Other Neuroscience & Urology - - - n.a.
Other Revenues 16.3 13.7 2.6 19.0%
---- ---- --- ----
Net revenues $1,881.8 $1,570.9 $310.9 19.8%
======== ======== ====== ====
Twelve Months Ended Change
December 31,
------------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Eye Care $2,460.2 $2,437.7 $22.5 0.9%
Restasis(R) 1,412.3 1,419.5 (7.2) (0.5)%
Alphagan(R)/Combigan(R) 377.3 376.6 0.7 0.2%
Lumigan(R)/Ganfort(R) 317.5 326.4 (8.9) (2.7)%
Ozurdex(R) 98.4 84.4 14.0 16.6%
Eye Drops 199.5 186.5 13.0 7.0%
Other Eye Care 55.2 44.3 10.9 24.6%
Total Medical Aesthetics 2,449.2 1,622.9 826.3 50.9%
Facial Aesthetics 1,362.8 1,226.3 136.5 11.1%
Botox(R) Cosmetics 812.2 729.2 83.0 11.4%
Fillers 501.1 446.9 54.2 12.1%
Kybella(R) 49.5 50.2 (0.7) (1.4)%
Plastic Surgery 242.6 210.4 32.2 15.3%
Breast Implants 242.6 206.0 36.6 17.8%
Other Plastic Surgery - 4.4 (4.4) (100.0)%
Regenerative Medicine 433.9 - 433.9 n.a.
Alloderm(R) 321.2 - 321.2 n.a.
Other Regenerative Medicine 112.7 - 112.7 n.a.
Body Contouring 256.7 - 256.7 n.a.
Coolsculpting(R) Systems & Add On Applicators 106.6 - 106.6 n.a.
Coolsculpting(R) Consumables 150.1 - 150.1 n.a.
Skin Care 153.2 186.2 (33.0) (17.7)%
SkinMedica(R) 96.8 108.3 (11.5) (10.6)%
Latisse(R) 56.4 77.9 (21.5) (27.6)%
Total Medical Dermatology 340.8 396.5 (55.7) (14.0)%
Aczone(R) 166.3 217.3 (51.0) (23.5)%
Tazorac(R) 65.4 95.5 (30.1) (31.5)%
Botox(R) Hyperhidrosis 67.2 65.2 2.0 3.1%
Other Medical Dermatology 41.9 18.5 23.4 126.5%
Total Neuroscience & Urology 1,483.1 1,306.3 176.8 13.5%
Botox(R) Therapeutics 1,375.0 1,188.8 186.2 15.7%
Rapaflo(R) 108.1 116.6 (8.5) (7.3)%
Other Neuroscience & Urology - 0.9 (0.9) (100.0)%
Other Revenues 70.3 48.3 22.0 45.5%
---- ---- ---- ----
Net revenues $6,803.6 $5,811.7 $991.9 17.1%
======== ======== ====== ====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and twelve months ended December 31, 2017 and 2016.
Table 10
ALLERGAN PLC
US General Medicine Product Revenue
(Unaudited; in millions)
Three Months Ended Change
December 31,
------------
2017 2016 Dollars %
---- ---- ------- ---
Total Central Nervous System (CNS) $349.0 $339.0 10.0 2.9%
Namenda XR(R) 97.8 141.1 (43.3) (30.7)%
Namzaric(R) 36.8 19.5 17.3 88.7%
Viibryd(R)/Fetzima(R) 89.0 89.7 (0.7) (0.8)%
Vraylar(TM) 87.7 43.2 44.5 103.0%
Saphris(R) 37.7 43.2 (5.5) (12.7)%
Namenda(R) IR - 2.3 (2.3) (100.0)%
Total Gastrointestinal (GI) 453.2 444.0 9.2 2.1%
Linzess(R) 194.8 173.6 21.2 12.2%
Asacol(R)/Delzicol(R) 42.8 62.9 (20.1) (32.0)%
Carafate(R)/Sulcrate(R) 59.2 61.3 (2.1) (3.4)%
Zenpep(R) 58.5 55.6 2.9 5.2%
Canasa(R)/Salofalk(R) 47.0 43.7 3.3 7.6%
Viberzi(R) 42.9 38.0 4.9 12.9%
Other GI 8.0 8.9 (0.9) (10.1)%
Total Women's Health 285.8 314.5 (28.7) (9.1)%
Lo Loestrin(R) 126.5 107.5 19.0 17.7%
Estrace(R) Cream 101.5 103.0 (1.5) (1.5)%
Minastrin(R) 24 5.3 78.4 (73.1) (93.2)%
Liletta(R) 14.5 8.3 6.2 74.7%
Other Women's Health 38.0 17.3 20.7 119.7%
Total Anti-Infectives 66.6 58.0 8.6 14.8%
Teflaro(R) 29.2 31.7 (2.5) (7.9)%
Dalvance(R) 13.0 12.6 0.4 3.2%
Avycaz(R) 18.5 9.2 9.3 101.1%
Other Anti-Infectives 5.9 4.5 1.4 31.1%
Diversified Brands 319.4 327.8 (8.4) (2.6)%
Bystolic(R) /Byvalson(R) 157.5 159.8 (2.3) (1.4)%
Armour Thyroid 51.3 44.7 6.6 14.8%
Savella(R) 23.9 29.1 (5.2) (17.9)%
Lexapro(R) 12.4 15.8 (3.4) (21.5)%
Enablex(R) 0.8 2.4 (1.6) (66.7)%
PacPharma 4.3 2.3 2.0 87.0%
Other Diversified Brands 69.2 73.7 (4.5) (6.1)%
Other Revenues 51.3 49.7 1.6 3.2%
---- ---- --- ---
Net revenues $1,525.3 $1,533.0 $(7.7) (0.5)%
======== ======== ===== =====
Twelve Months Ended Change
December 31,
------------
2017 2016 (1) Dollars %
---- ------- ------- ---
Total Central Nervous System (CNS) $1,359.9 $1,303.6 56.3 4.3%
Namenda XR(R) 452.8 627.6 (174.8) (27.9)%
Namzaric(R) 130.8 57.5 73.3 127.5%
Viibryd(R)/Fetzima(R) 333.2 342.3 (9.1) (2.7)%
Saphris(R) 155.2 166.8 (11.6) (7.0)%
Vraylar(TM) 287.8 94.3 193.5 n.m.
Namenda(R) IR 0.1 15.1 (15.0) (99.3)%
Total Gastrointestinal (GI) 1,695.0 1,721.0 (26.0) (1.5)%
Linzess(R) 701.1 625.6 75.5 12.1%
Asacol(R)/Delzicol(R) 195.5 360.8 (165.3) (45.8)%
Carafate(R)/Sulcrate(R) 235.8 229.0 6.8 3.0%
Zenpep(R) 212.3 200.7 11.6 5.8%
Canasa(R)/Salofalk(R) 162.7 178.7 (16.0) (9.0)%
Viberzi(R) 156.6 93.3 63.3 67.8%
Other GI 31.0 32.9 (1.9) (5.8)%
Total Women's Health 1,044.2 1,179.6 (135.4) (11.5)%
Lo Loestrin(R) 459.3 403.5 55.8 13.8%
Estrace(R) Cream 366.6 379.4 (12.8) (3.4)%
Minastrin(R) 24 61.4 325.9 (264.5) (81.2)%
Liletta(R) 37.6 23.3 14.3 61.4%
Other Women's Health 119.3 47.5 71.8 151.2%
Total Anti-Infectives 257.3 225.1 32.2 14.3%
Teflaro(R) 121.9 133.6 (11.7) (8.8)%
Dalvance(R) 53.9 39.3 14.6 37.2%
Avycaz(R) 61.2 36.1 25.1 69.5%
Other Anti-Infectives 20.3 16.1 4.2 26.1%
Diversified Brands 1,242.6 1,366.6 (124.0) (9.1)%
Bystolic(R) /Byvalson(R) 612.2 638.8 (26.6) (4.2)%
Armour Thyroid 169.1 166.5 2.6 1.6%
Savella(R) 98.2 103.2 (5.0) (4.8)%
Lexapro(R) 51.8 66.6 (14.8) (22.2)%
Enablex(R) 3.6 17.1 (13.5) (78.9)%
PacPharma 14.0 52.0 (38.0) (73.1)%
Other Diversified Brands 293.7 322.4 (28.7) (8.9)%
Other Revenues 197.2 128.0 69.2 54.1%
----- ----- ---- ----
Net revenues $5,796.2 $5,923.9 $(127.7) (2.2)%
======== ======== ======= =====
(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.
The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and twelve months ended December 31, 2017 and 2016.
Table 11
ALLERGAN PLC
International Product Revenue
(Unaudited; in millions)
Three Months Ended Change
December 31,
------------
2017 2016 Dollars %
---- ---- ------- ---
Total Eye Care $342.7 $315.0 $27.7 8.8%
Lumigan(R)/Ganfort(R) 99.7 92.5 7.2 7.8%
Alphagan(R)/Combigan(R) 46.7 42.0 4.7 11.2%
Ozurdex(R) 60.9 48.8 12.1 24.8%
Optive(R) 30.6 26.2 4.4 16.8%
Other Eye Drops 43.2 43.1 0.1 0.2%
Restasis(R) 14.6 18.3 (3.7) (20.2)%
Other Eye Care 47.0 44.1 2.9 6.6%
Total Medical Aesthetics 389.3 284.6 104.7 36.8%
Facial Aesthetics 311.4 244.0 67.4 27.6%
Botox(R) Cosmetics 155.0 127.1 27.9 22.0%
Juvederm Collection 154.7 116.2 38.5 33.1%
Belkyra(R) (Kybella(R)) 1.7 0.7 1.0 142.9%
Plastic Surgery 40.6 37.8 2.8 7.4%
Breast Implants 40.1 37.4 2.7 7.2%
Earfold(TM) 0.5 0.4 0.1 25.0%
Regenerative Medicine 5.8 - 5.8 n.a.
Alloderm(R) 2.5 - 2.5 n.a.
Other Regenerative Medicine 3.3 - 3.3 n.a.
Body Contouring 27.0 - 27.0 n.a.
Coolsculpting(R) Systems & Add On Applicators 11.7 - 11.7 n.a.
Coolsculpting(R) Consumables 15.3 - 15.3 n.a.
Skin Care 4.5 2.8 1.7 60.7%
Botox(R) Therapeutics and Other 160.6 138.3 22.3 16.1%
Botox(R) Therapeutics 96.9 83.0 13.9 16.7%
Asacol(R)/Delzicol(R) 13.4 13.2 0.2 1.5%
Constella(R) 5.8 4.6 1.2 26.1%
Other Products 44.5 37.5 7.0 18.7%
Other Revenues 23.3 15.3 8.0 52.3%
---- ---- --- ----
Net revenues $915.9 $753.2 $162.7 21.6%
====== ====== ====== ====
Twelve Months Ended Change
December 31,
------------
2017 2016 Dollars %
---- ---- ------- ---
Total Eye Care $1,282.1 $1,219.4 $62.7 5.1%
Lumigan(R)/Ganfort(R) 371.5 361.7 9.8 2.7%
Alphagan(R)/Combigan(R) 175.1 169.3 5.8 3.4%
Ozurdex(R) 213.4 179.0 34.4 19.2%
Optive(R) 114.1 101.9 12.2 12.0%
Other Eye Drops 166.9 174.3 (7.4) (4.2)%
Restasis(R) 61.3 68.0 (6.7) (9.9)%
Other Eye Care 179.8 165.2 14.6 8.8%
Total Medical Aesthetics 1,366.6 1,064.6 302.0 28.4%
Facial Aesthetics 1,104.5 902.7 201.8 22.4%
Botox(R) Cosmetics 557.0 480.0 77.0 16.0%
Juvederm Collection 540.7 420.4 120.3 28.6%
Belkyra(R) (Kybella(R)) 6.8 2.3 4.5 195.7%
Plastic Surgery 158.6 150.7 7.9 5.2%
Breast Implants 156.9 149.9 7.0 4.7%
Earfold(TM) 1.7 0.8 0.9 112.5%
Regenerative Medicine 16.5 - 16.5 n.a.
Alloderm(R) 7.5 - 7.5 n.a.
Other Regenerative Medicine 9.0 - 9.0 n.a.
Body Contouring 73.7 - 73.7 n.a.
Coolsculpting(R) Systems & Add On Applicators 32.1 - 32.1 n.a.
Coolsculpting(R) Consumables 41.6 - 41.6 n.a.
Skin Care 13.3 11.2 2.1 18.8%
Botox(R) Therapeutics and Other 587.4 537.3 50.1 9.3%
Botox(R) Therapeutics 357.5 323.0 34.5 10.7%
Asacol(R)/Delzicol(R) 50.2 53.7 (3.5) (6.5)%
Constella(R) 21.9 17.3 4.6 26.6%
Other Products 157.8 143.3 14.5 10.1%
Other Revenues 83.4 60.0 23.4 39.0%
---- ---- ---- ----
Net revenues $3,319.5 $2,881.3 $438.2 15.2%
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The following table provides a reconciliation of anticipated GAAP loss from continuing operations to non-GAAP performance net income attributable to shareholders for the three months ending March 31, 2018 and the twelve months ending December 31, 2018:
Table 12
Three months ending Twelve months ending
March 31, 2018 December 31, 2018
-------------- -----------------
(in millions, except per share information) LOW HIGH LOW HIGH
--- ---- --- ----
GAAP (loss) from continuing operations attributable $(380.0) $(308.0) $(743.0) $(480.0)
to shareholders
Adjusted for:
Amortization 1,700.0 1,700.0 6,450.0 6,450.0
Acquisition, divestiture, licensing and other 150.0 150.0 480.0 480.0
non-recurring charges
Accretion and fair-value adjustments to 5.0 5.0 (10.0) (10.0)
contingent
consideration
Impairment/asset sales and related costs - - 200.0 200.0
Non-recurring (gains) / losses - - - -
Non-acquisition restructurings, including 15.0 15.0 20.0 20.0
Global Supply Chain initiatives
Legal settlements - - - -
Income taxes on items above and other (365.0) (365.0) (1,060.0) (1,060.0)
discrete income tax adjustments
Non-GAAP performance net income attributable to 1,125.0 1,197.0 5,337.0 5,600.0
shareholders
Diluted earnings per share
Diluted (loss) per share from continuing operations $(1.13) $(0.92) $(2.16) $(1.40)
attributable to
shareholders- GAAP
Non-GAAP performance diluted net income per $3.20 $3.40 $15.25 $16.00
share attributable to
shareholders
Basic weighted average ordinary shares outstanding 336.0 336.0 344.0 344.0
Effect of dilutive securities:
Dilutive shares 16.0 16.0 6.0 6.0
---- ---- --- ---
Diluted weighted average ordinary shares outstanding 352.0 352.0 350.0 350.0
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CONTACTS: Allergan: Karina Calzadilla Media: View original content with multimedia:http://www.prnewswire.com/news-releases/allergan-reports-solid-finish-to-2017-with-12-increase-in-fourth-quarter-gaap-net-revenues-to-43-billion-300593801.html SOURCE Allergan plc |
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Company Codes: NYSE:AGN |
