Subjects: ERN, CCA, ERP
Allergan Reports Second Quarter 2019 Financial Results
DUBLIN, Aug. 6, 2019 /PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its second quarter 2019 financial results including GAAP net revenues of $4.09 billion, a 0.8 percent decrease from the prior year quarter. Excluding foreign exchange impact, second quarter 2019 non-GAAP net revenues increased 1.2 percent from the prior year quarter.
SECOND QUARTER 2019 FINANCIAL RESULTS
(unaudited; $ in millions, except per share | Q2 '19 | Q2 '18 | Q2 '19 v Q2 '18 | Six | Six | 2019 v | ||||||||||||||||||
Total Net Revenues | $ | 4,090.1 | $ | 4,124.2 | (0.8) | % | $ | 7,687.2 | $ | 7,796.3 | (1.4) | % | ||||||||||||
Operating (Loss) | $ | (1,262.9) | $ | (467.0) | (170.4) | % | $ | (3,572.1) | $ | (1,121.0) | (218.7) | % | ||||||||||||
Diluted EPS | $ | (5.37) | $ | (1.39) | (286.3) | % | $ | (12.63) | $ | (2.39) | (428.5) | % | ||||||||||||
SG&A Expense | $ | 1,197.5 | $ | 1,187.5 | 0.8 | % | $ | 2,309.8 | $ | 2,283.4 | 1.2 | % | ||||||||||||
R&D Expense | $ | 450.0 | $ | 689.2 | (34.7) | % | $ | 885.0 | $ | 1,163.9 | (24.0) | % | ||||||||||||
Tax Rate | (20.8) | % | 1.1 | % | (21.9) | % | (5.9) | % | 47.7 | % | (53.6) | % | ||||||||||||
Non-GAAP Net Revenues | $ | 4,090.1 | $ | 4,099.2 | (0.2) | % | $ | 7,687.2 | $ | 7,771.3 | (1.1) | % | ||||||||||||
Non-GAAP Operating Income | $ | 1,850.3 | $ | 1,973.8 | (6.3) | % | $ | 3,475.9 | $ | 3,732.9 | (6.9) | % | ||||||||||||
Non-GAAP Performance Net Income Per Share | $ | 4.38 | $ | 4.42 | (0.9) | % | $ | 8.17 | $ | 8.16 | 0.1 | % | ||||||||||||
Non-GAAP Adjusted EBITDA | $ | 1,952.4 | $ | 2,086.2 | (6.4) | % | $ | 3,689.4 | $ | 3,955.9 | (6.7) | % | ||||||||||||
Non-GAAP SG&A Expense | $ | 1,162.8 | $ | 1,134.4 | 2.5 | % | $ | 2,259.0 | $ | 2,183.1 | 3.5 | % | ||||||||||||
Non-GAAP R&D Expense | $ | 447.0 | $ | 388.9 | 14.9 | % | $ | 844.9 | $ | 744.7 | 13.5 | % | ||||||||||||
Non-GAAP Tax Rate | 12.8 | % | 14.3 | % | (1.5) | % | 12.8 | % | 14.2 | % | (1.4) | % | ||||||||||||
Executive Commentary
"In the second quarter of 2019, Allergan delivered steady growth in our key products including BOTOX®, VRAYLAR®, JUVÉDERM®, Lo LOESTRIN® and OZURDEX® while we continued to advance our pipeline, highlighted by the FDA's approval of VRAYLAR® (Cariprazine) for Bipolar Depression and the NDA acceptance for Bimatoprost SR for Glaucoma," said Brent Saunders, Chairman and CEO of Allergan. "Our second quarter results demonstrate the continued momentum in our business and our focus on customers. Thank you to the Allergan colleagues around the world who continue to deliver our products to the patients who need them."
Second Quarter 2019 Results
GAAP operating loss in the second quarter of 2019 was $1.26 billion, including the impact of impairments. Non-GAAP operating income in the second quarter of 2019 was $1.85 billion, a decrease of 6.3 percent versus the prior year quarter, partially impacted by lower revenues due to divestitures, products that lost exclusivity and declines in textured breast implants due to a global recall. GAAP cash flow from operations for the second quarter of 2019 totaled $1.41 billion.
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A) Expense was $1.20 billion for the second quarter of 2019, compared to $1.19 billion in the prior year quarter. Total non-GAAP SG&A expense was $1.16 billion for the second quarter of 2019, an increase of 2.5 percent from the prior year quarter, primarily related to an increase in spending to support key products and new product launches. GAAP R&D investment for the second quarter of 2019 was $450.0 million, compared to $689.2 million in the second quarter of 2018. Non-GAAP R&D investment for the second quarter of 2019 was $447.0 million, an increase of 14.9 percent compared to the prior year quarter, due to increased direct project spend to support pipeline advancement and new product launches.
Amortization, Tax and Capitalization
Amortization expense for the second quarter of 2019 was $1.40 billion, compared to $1.70 billion in the second quarter of 2018. The Company's GAAP tax rate was -20.8 percent in the second quarter of 2019. The Company's non-GAAP adjusted tax rate was 12.8 percent in the second quarter of 2019. As of June 30, 2019, Allergan had cash and marketable securities of $1.97 billion and outstanding indebtedness of $22.7 billion.
Asset Sales & Impairments, Net and In-Process R&D Impairments
Allergan recorded total pre-tax impairment charges of $1.65 billion in the three months ended June 30, 2019. This amount includes a goodwill impairment of $1.09 billion in the General Medicine Reporting unit, primarily due to delays in clinical studies as well as a reduction in the expected value of certain R&D projects. 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 Non-GAAP Operating Income.
SECOND QUARTER 2019 BUSINESS SEGMENT RESULTS
U.S. Specialized Therapeutics
U.S. Specialized Therapeutics net revenues were $1.79 billion in the second quarter of 2019, a decrease of 2.3 percent versus the prior year quarter. Demand growth in BOTOX® and JUVÉDERM® Collection was offset by a decline in sales of CoolSculpting® and breast implants compared to the prior year quarter, lower RESTASIS® revenues and the divestiture of the Company's Medical Dermatology business on September 20, 2018. Segment gross margin for the second quarter of 2019 was 91.5 percent. Segment contribution for the second quarter of 2019 was $1.23 billion.
Medical Aesthetics
- Facial Aesthetics
- BOTOX® Cosmetic net revenues in the second quarter of 2019 were $252.4 million, an increase of 6.7 percent from the prior year quarter.
- JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the second quarter of 2019 were $156.6 million, an increase of 12.0 percent versus the prior year quarter.
- Regenerative Medicine
- ALLODERM® net revenues in the second quarter of 2019 were $101.2 million, a decrease of 5.5 percent versus the prior year quarter.
- Body Contouring
- CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the second quarter of 2019 were $78.9 million, a decrease of 27.1 percent from the prior year quarter.
Neurosciences & Urology
- BOTOX® Therapeutic net revenues in the second quarter of 2019 were $447.0 million, an increase of 5.9 percent versus the prior year quarter.
Eye Care
- RESTASIS® net revenues in the second quarter of 2019 were $310.9 million, a decrease of 2.3 percent versus the prior year quarter.
- ALPHAGAN®/COMBIGAN® net revenues in the second quarter of 2019 were $91.6 million, a decrease of 6.6 percent versus the prior year quarter.
- OZURDEX® net revenues in the second quarter of 2019 were $29.9 million, an increase of 8.3 percent versus the prior year quarter.
U.S. General Medicine
U.S. General Medicine net revenues in the second quarter of 2019 were $1.46 billion, an increase of 10.3 percent versus the prior year quarter, primarily due to growth in VRAYLAR®, VIIBRYD® and Lo LOESTRIN®, partially offset by lower revenues from products that lost exclusivity. Segment gross margin for the second quarter of 2019 was 84.1 percent. Segment contribution for the second quarter of 2019 was $943.9 million.
Central Nervous System
- VRAYLAR® net revenues were $196.1 million in the second quarter of 2019, an increase of 71.7 percent from the prior year quarter.
- VIIBRYD®/FETZIMA® net revenues in the second quarter of 2019 were $107.8 million, an increase of 24.3 percent from the prior year quarter.
Gastrointestinal, Women's Health & Diversified Brands
- LINZESS® net revenues in the second quarter of 2019 were $196.0 million, an increase of 2.2 percent versus the prior year quarter.
- Lo LOESTRIN® net revenues in the second quarter of 2019 were $145.5 million, an increase of 13.8 percent versus the prior year quarter.
- BYSTOLIC®/BYVALSON® net revenues in the second quarter of 2019 were $150.5 million, an increase of 1.6 percent from the prior year quarter.
International
International net revenues in the second quarter of 2019 were $847.7 million, a decrease of 4.3 percent versus the prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics and OZURDEX® as well as declines in textured breast implants and LUMIGAN®/GANFORT®. Segment gross margin for the second quarter of 2019 was 82.8 percent. Segment contribution was $420.1 million.
Facial Aesthetics
- BOTOX® Cosmetic net revenues in the second quarter of 2019 were $175.8 million, an increase of 10.7 percent versus the prior year quarter excluding foreign exchange impact.
- JUVÉDERM® Collection net revenues in the second quarter of 2019 were $172.7 million, an increase of 17.8 percent versus the prior year quarter excluding foreign exchange impact.
Eye Care
- LUMIGAN®/GANFORT® net revenues in the second quarter of 2019 were $90.4 million, a decrease of 4.3 percent versus the prior year quarter excluding foreign exchange impact.
- OZURDEX® net revenues in the second quarter of 2019 were $81.0 million, an increase of 28.1 percent versus the prior year quarter excluding foreign exchange impact.
Botox® Therapeutic
- BOTOX® Therapeutic net revenues in the second quarter of 2019 were $98.8 million, an increase of 1.2 percent versus the prior year quarter excluding foreign exchange impact.
PIPELINE UPDATE
Allergan R&D continues to advance its pipeline. During the second quarter of 2019, the Company's key late-stage clinical developments included:
- Allergan and Gedeon Richter announced that the U.S. Food and Drug Administration (FDA) approved the expanded use of VRAYLAR® (cariprazine) to treat depressive episodes associated with bipolar I disorder (bipolar depression) in adults. Additionally, VRAYLAR® (cariprazine) is approved for the treatment of schizophrenia in adults and for the acute treatment of adult patients with manic or mixed episodes associated with bipolar I disorder.
- The FDA approved Allergan's supplemental Biologics License Application (sBLA) to expand the BOTOX® (onabotulinumtoxinA) label for the treatment of pediatric patients ages two years and older with upper limb spasticity. Additionally, the FDA is reviewing Allergan's sBLA for the use of BOTOX® to treat pediatric patients with lower limb spasticity, with a decision expected by the fourth quarter of 2019.
- Allergan received FDA clearance for CoolTonetm to strengthen, tone and firm the muscles of the abdomen, buttocks and thighs. CoolTonetm is a body contouring device that uses magnetic muscle stimulation, or MMS technology, to penetrate into the muscle layers and induce involuntary muscle contractions. Launch is expected in the second half of 2019.
- Allergan announced that the FDA accepted the Company's New Drug Application (NDA) for Bimatoprost Sustained-Release (SR), a biodegradable implant for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. FDA action on the NDA and launch are expected in the first half of 2020.
- The European Medicines Agency (EMA) has validated the Marketing Authorisation Application (MAA) for abicipar, Allergan and Molecular Partners' novel DARPin® therapy for the treatment of neovascular age-related macular degeneration. If approved, abicipar is expected to be the first anti-VEGF therapy to sustain vision gains on a true fixed 12-week dosing interval. An EMA decision may be received in the second half of 2020. The U.S. launch, following FDA filing and review, is expected mid-2020.
In addition to second quarter 2019 pipeline developments and the expected launches of Bimatoprost SR, CoolTonetm and abicipar listed above, Allergan anticipates a regulatory decision from the FDA in December 2019 for the Company's NDA for ubrogepant, an oral CGRP receptor antagonist for the acute treatment of migraine, with launch expected in the first half of 2020.
OTHER DEVELOPMENTS
On June 25, 2019, AbbVie Inc. and Allergan plc announced that the companies have entered into a definitive transaction agreement under which AbbVie will acquire Allergan in a cash and stock transaction for a transaction equity value of approximately $63 billion, based on the closing price of AbbVie's common stock of $78.45 on June 24, 2019.
FULL YEAR 2019 GUIDANCE
Previous Guidance | Current Guidance | ||||
Twelve Months Ending December 31, 2019 | Twelve Months Ending December 31, 2019 | ||||
GAAP | NON-GAAP | GAAP | NON-GAAP | ||
Total Net Revenues | ~$15.125 - $15.425 | ~$15.100 - $15.400 | ~$15.425 - $15.625 | ~$15.400 - $15.600 | |
Gross Margin (as a % of revenues) | ~85.0% - 85.5% | ~85.0% - 85.5% | ~85.0% - 85.5% | ~85.0% - 85.5% | |
SG&A Expense | ~$4.1 - $4.3 billion | ~$4.1 - $4.3 billion | ~$4.5 - $4.6 billion | ~$4.4 - $4.5 billion | |
R&D Expense | ~$1.8 - $1.9 billion | ~$1.6 - $1.7 billion | ~$1.8 - $1.9 billion | ~$1.6 - $1.7 billion | |
Net Interest Expense/Other Income | ~ $775.0 million | ~ $800.0 million | ~ $775.0 million | ~ $800.0 million | |
Tax Rate | ~ 1.0% | 13.0% - 13.5% | ~ (5.0)% | ~13.0% | |
Net Income / (Loss) Per Share1 | >($5.70) | > $16.55 | > ($12.03) | > $16.55 | |
Average 2019 Share Count2 | ~ 329.0 million | ~ 332.0 million | ~ 329.0 million | ~ 332.0 million | |
Cash Flow from Operations | $5.0 - $5.5 billion | n.a. | $5.0 - $5.5 billion | n.a. | |
(1) GAAP represents EPS for ordinary shareholders. GAAP income per share includes the impact of amortization of approximately $5.7 billion. Non-GAAP represents performance net income per share. | |||||
(2) GAAP EPS shares do not include dilution of shares when earnings are a net loss. As such, the dilution impact of outstanding equity awards is not included in the forecasted shares. | |||||
ADDITIONAL SECOND QUARTER DETAILS
Due to the proposed acquisition of Allergan by AbbVie, Allergan is not hosting a conference call to discuss its second quarter results. For additional materials related to Allergan's second quarter results, please visit Allergan's Investor Relations website at https://www.allergan.com/investors/events-presentations.
Allergan Contacts: | |
Investors: | |
Manisha Narasimhan, PhD | (862) 261-7162 |
Christine Chiou | (862) 261-7396 |
Media: | |
Lisa Brown | (862) 261-7320 |
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a global pharmaceutical leader 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 primarily focused on four key therapeutic areas including medical aesthetics, eye care, central nervous system and gastroenterology. As part of its approach to delivering innovation for better patient care, Allergan has built one of the broadest pharmaceutical and device research and development pipelines in the industry.
With colleagues and commercial operations located 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; risks associated with divestitures, acquisitions, mergers and joint ventures; risks related to impairments; uncertainty associated with financial projections, projected debt reduction, projected cost reductions, projected synergies, restructurings, increased costs, and adverse tax consequences; difficulties or delays in manufacturing; risks related to the proposed transaction between AbbVie and Allergan, such as, but not limited to, failure to complete the possible transaction, failure to realize the expected benefits of the possible transaction, and general economic and business conditions affecting the combined company following the consummation of the possible transaction;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, 2018 and Allergan's Quarterly Report on Form 10-Q for the period ended March 31, 2019. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.
Statements Required by the Irish Takeover Rules
To the extent that the earnings guidance contained, referred to or summarized in this press release constitute a profit forecast for the purposes of Rule 28 of the Irish Takeover Panel Act, Takeover Rules, 2013, such guidance will (unless the Irish Takeover Panel consents otherwise) be reported on in accordance with that rule in the proxy statement. Except as described in the previous sentence, no statement in this press release is intended to constitute a profit forecast for any period, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for Allergan. No statement in this press release constitutes an asset valuation.
The directors of Allergan accept responsibility for the information contained in this press release. To the best of the knowledge and belief of the directors of Allergan (who have taken all reasonable care to ensure that such is the case), the information contained in this press release is in accordance with the facts and does not omit anything likely to affect the import of such information.
Any holder of 1% or more of any class of relevant securities of Allergan may have disclosure obligations under Rule 8.3 of the Irish Takeover Panel Act, 1997, Takeover Rules 2013.
The following presents Allergan plc's statement of operations for the three and six months ended June 30, 2019 and 2018: | ||||||||||||||||||||
Table 1 | ||||||||||||||||||||
ALLERGAN PLC | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(Unaudited; in millions, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net revenues | $ | 4,090.1 | $ | 4,124.2 | $ | 7,687.2 | $ | 7,796.3 | ||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of sales (excludes amortization and impairment of acquired | 652.3 | 481.8 | 1,150.1 | 1,004.6 | ||||||||||||||||
Research and development | 450.0 | 689.2 | 885.0 | 1,163.9 | ||||||||||||||||
Selling, general and administrative | 1,197.5 | 1,187.5 | 2,309.8 | 2,283.4 | ||||||||||||||||
Amortization | 1,402.0 | 1,697.1 | 2,801.4 | 3,394.7 | ||||||||||||||||
In-process research and development impairments | 436.0 | 276.0 | 436.0 | 798.0 | ||||||||||||||||
Goodwill and other asset impairments / sales, net | 1,215.2 | 259.6 | 3,677.0 | 272.7 | ||||||||||||||||
Total operating expenses | 5,353.0 | 4,591.2 | 11,259.3 | 8,917.3 | ||||||||||||||||
Operating (loss) | (1,262.9) | (467.0) | (3,572.1) | (1,121.0) | ||||||||||||||||
Non-operating income (expense): | ||||||||||||||||||||
Interest income | 9.7 | 6.3 | 31.0 | 23.6 | ||||||||||||||||
Interest (expense) | (195.4) | (230.0) | (397.2) | (480.6) | ||||||||||||||||
Other income (expense), net | (4.7) | 215.4 | 9.1 | 136.6 | ||||||||||||||||
Total other income (expense), net | (190.4) | (8.3) | (357.1) | (320.4) | ||||||||||||||||
(Loss) before income taxes and noncontrolling interest | (1,453.3) | (475.3) | (3,929.2) | (1,441.4) | ||||||||||||||||
(Benefit) for income taxes | 301.6 | (5.2) | 233.0 | (687.4) | ||||||||||||||||
Net (loss) | (1,754.9) | (470.1) | (4,162.2) | (754.0) | ||||||||||||||||
(Income) attributable to noncontrolling interest | (4.1) | (2.4) | (4.8) | (4.6) | ||||||||||||||||
Net (loss) attributable to shareholders | (1,759.0) | (472.5) | (4,167.0) | (758.6) | ||||||||||||||||
Dividends on preferred shares | - | - | - | 46.4 | ||||||||||||||||
Net (loss) attributable to ordinary shareholders | $ | (1,759.0) | $ | (472.5) | $ | (4,167.0) | $ | (805.0) | ||||||||||||
(Loss) per share attributable to ordinary shareholders: | ||||||||||||||||||||
Net (loss) per share - basic | $ | (5.37) | $ | (1.39) | $ | (12.63) | $ | (2.39) | ||||||||||||
Net (loss) per share - diluted | (5.37) | (1.39) | (12.63) | (2.39) | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 327.8 | 339.1 | 329.9 | 336.9 | ||||||||||||||||
Diluted | 327.8 | 339.1 | 329.9 | 336.9 | ||||||||||||||||
The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and six months ended June 30, 2019 and 2018. | ||||||||||||||||||||||||||||||||||||||||||||||||
Table 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC | ||||||||||||||||||||||||||||||||||||||||||||||||
NET REVENUES TOP GLOBAL PRODUCTS | ||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Movement | ||||||||||||||||||||||||||||||||||||||||||||||
US | US | International | Corporate | Total | US | US | International | Corporate | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Botox® | $ | 699.4 | $ | - | $ | 274.6 | $ | - | $ | 974.0 | $ | 658.5 | $ | - | $ | 276.0 | $ | - | $ | 934.5 | $ | 39.5 | 4.2 | % | ||||||||||||||||||||||||
Restasis® | 310.9 | - | 11.9 | - | 322.8 | 318.2 | - | 16.0 | - | 334.2 | (11.4) | (3.4) | % | |||||||||||||||||||||||||||||||||||
Juvederm® Collection | 156.6 | - | 172.7 | - | 329.3 | 139.8 | - | 156.1 | - | 295.9 | 33.4 | 11.3 | % | |||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® | 62.1 | - | 90.4 | - | 152.5 | 73.0 | - | 100.5 | - | 173.5 | (21.0) | (12.1) | % | |||||||||||||||||||||||||||||||||||
Linzess®/Constella® | - | 196.0 | 4.8 | - | 200.8 | - | 191.8 | 6.4 | - | 198.2 | 2.6 | 1.3 | % | |||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® | - | 150.5 | 0.5 | - | 151.0 | - | 148.1 | 0.6 | - | 148.7 | 2.3 | 1.5 | % | |||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® | 91.6 | - | 40.9 | - | 132.5 | 98.1 | - | 44.6 | - | 142.7 | (10.2) | (7.1) | % | |||||||||||||||||||||||||||||||||||
Lo Loestrin® | - | 145.5 | - | - | 145.5 | - | 127.8 | - | - | 127.8 | 17.7 | 13.8 | % | |||||||||||||||||||||||||||||||||||
Breast Implants | 67.6 | - | (31.4) | - | 36.2 | 75.9 | - | 39.9 | - | 115.8 | (79.6) | (68.7) | % | |||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® | - | 107.8 | 2.7 | - | 110.5 | - | 86.7 | 1.6 | - | 88.3 | 22.2 | 25.1 | % | |||||||||||||||||||||||||||||||||||
Eye Drops | 57.8 | - | 57.3 | - | 115.1 | 53.8 | - | 72.4 | - | 126.2 | (11.1) | (8.8) | % | |||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® | - | 31.6 | 9.7 | - | 41.3 | - | 32.6 | 12.4 | - | 45.0 | (3.7) | (8.2) | % | |||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables | 60.7 | - | 20.3 | - | 81.0 | 71.9 | - | 18.5 | - | 90.4 | (9.4) | (10.4) | % | |||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On | 18.2 | - | 11.6 | - | 29.8 | 36.4 | - | 12.4 | - | 48.8 | (19.0) | (38.9) | % | |||||||||||||||||||||||||||||||||||
Ozurdex ® | 29.9 | - | 81.0 | - | 110.9 | 27.6 | - | 67.9 | - | 95.5 | 15.4 | 16.1 | % | |||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® | - | 56.2 | 0.7 | - | 56.9 | - | 54.3 | 0.7 | - | 55.0 | 1.9 | 3.5 | % | |||||||||||||||||||||||||||||||||||
Aczone® | 1.8 | - | - | - | 1.8 | 21.1 | - | 0.1 | - | 21.2 | (19.4) | (91.5) | % | |||||||||||||||||||||||||||||||||||
Zenpep® | - | 70.0 | - | - | 70.0 | - | 55.5 | - | - | 55.5 | 14.5 | 26.1 | % | |||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® | - | 8.0 | 4.1 | - | 12.1 | - | 45.0 | 4.5 | - | 49.5 | (37.4) | (75.6) | % | |||||||||||||||||||||||||||||||||||
Vraylar® | - | 196.1 | - | - | 196.1 | - | 114.2 | - | - | 114.2 | 81.9 | 71.7 | % | |||||||||||||||||||||||||||||||||||
Saphris® | - | 32.6 | - | - | 32.6 | - | 33.8 | - | - | 33.8 | (1.2) | (3.6) | % | |||||||||||||||||||||||||||||||||||
Viberzi® | - | 50.8 | 0.3 | - | 51.1 | - | 44.9 | 0.3 | - | 45.2 | 5.9 | 13.1 | % | |||||||||||||||||||||||||||||||||||
Teflaro® | - | 37.0 | - | - | 37.0 | - | 32.4 | 0.6 | - | 33.0 | 4.0 | 12.1 | % | |||||||||||||||||||||||||||||||||||
Namzaric® | - | 22.6 | - | - | 22.6 | - | 31.8 | - | - | 31.8 | (9.2) | (28.9) | % | |||||||||||||||||||||||||||||||||||
Rapaflo® | 4.5 | - | 1.4 | - | 5.9 | 19.7 | - | 1.6 | - | 21.3 | (15.4) | (72.3) | % | |||||||||||||||||||||||||||||||||||
Skin Care | 42.6 | - | 3.7 | - | 46.3 | 34.3 | - | 4.1 | - | 38.4 | 7.9 | 20.6 | % | |||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® | 8.5 | - | 0.6 | - | 9.1 | 11.2 | - | 2.3 | - | 13.5 | (4.4) | (32.6) | % | |||||||||||||||||||||||||||||||||||
Alloderm® | 101.2 | - | 2.2 | - | 103.4 | 107.1 | - | 2.3 | - | 109.4 | (6.0) | (5.5) | % | |||||||||||||||||||||||||||||||||||
Dalvance® | - | 20.3 | 2.2 | - | 22.5 | - | 17.7 | 1.3 | - | 19.0 | 3.5 | 18.4 | % | |||||||||||||||||||||||||||||||||||
Avycaz® | - | 26.7 | - | - | 26.7 | - | 23.5 | - | - | 23.5 | 3.2 | 13.6 | % | |||||||||||||||||||||||||||||||||||
Liletta® | - | 21.9 | - | - | 21.9 | - | 15.5 | - | - | 15.5 | 6.4 | 41.3 | % | |||||||||||||||||||||||||||||||||||
Namenda® | - | 6.1 | - | - | 6.1 | - | 3.4 | - | - | 3.4 | 2.7 | 79.4 | % | |||||||||||||||||||||||||||||||||||
Armour Thyroid | - | 56.7 | - | - | 56.7 | - | 49.2 | - | - | 49.2 | 7.5 | 15.2 | % | |||||||||||||||||||||||||||||||||||
Savella® | - | 22.3 | - | - | 22.3 | - | 19.1 | - | - | 19.1 | 3.2 | 16.8 | % | |||||||||||||||||||||||||||||||||||
Other Products Revenues | 71.7 | 197.0 | 85.5 | 1.6 | 355.8 | 80.1 | 192.7 | 105.8 | 28.6 | 407.2 | (51.4) | (12.6) | % | |||||||||||||||||||||||||||||||||||
Total Net Revenues | $ | 1,785.1 | $ | 1,455.7 | $ | 847.7 | $ | 1.6 | 4,090.1 | $ | 1,826.7 | $ | 1,320.0 | $ | 948.9 | $ | 28.6 | 4,124.2 | $ | (34.1) | (0.8) | % | ||||||||||||||||||||||||||
1Botox® is comprised of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||
Botox® Therapeutics | 447.0 | - | 98.8 | - | 545.8 | 422.0 | - | 104.6 | - | 526.6 | 19.2 | 3.6 | % | |||||||||||||||||||||||||||||||||||
Botox® Cosmetics | 252.4 | - | 175.8 | - | 428.2 | 236.5 | - | 171.4 | - | 407.9 | 20.3 | 5.0 | % | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | Movement | ||||||||||||||||||||||||||||||||||||||||||||||
US | US | International | Corporate | Total | US | US | International | Corporate | Total | Total | Total | |||||||||||||||||||||||||||||||||||||
Botox® | $ | 1,326.5 | $ | - | $ | 515.9 | $ | - | $ | 1,842.4 | $ | 1,231.0 | $ | - | $ | 520.8 | $ | - | $ | 1,751.8 | $ | 90.6 | 5.2 | % | ||||||||||||||||||||||||
Restasis® | 542.6 | - | 22.3 | - | 564.9 | 574.0 | - | 34.3 | - | 608.3 | (43.4) | (7.1) | % | |||||||||||||||||||||||||||||||||||
Juvederm® Collection | 286.3 | - | 330.5 | - | 616.8 | 262.6 | - | 302.2 | - | 564.8 | 52.0 | 9.2 | % | |||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® | 119.8 | - | 175.5 | - | 295.3 | 139.8 | - | 200.9 | - | 340.7 | (45.4) | (13.3) | % | |||||||||||||||||||||||||||||||||||
Linzess®/Constella® | - | 357.3 | 10.3 | - | 367.6 | - | 351.1 | 12.0 | - | 363.1 | 4.5 | 1.2 | % | |||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® | - | 278.8 | 0.9 | - | 279.7 | - | 280.9 | 1.1 | - | 282.0 | (2.3) | (0.8) | % | |||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® | 174.6 | - | 78.5 | - | 253.1 | 182.3 | - | 88.8 | - | 271.1 | (18.0) | (6.6) | % | |||||||||||||||||||||||||||||||||||
Lo Loestrin® | - | 271.3 | - | - | 271.3 | - | 242.4 | - | - | 242.4 | 28.9 | 11.9 | % | |||||||||||||||||||||||||||||||||||
Breast Implants | 128.8 | - | (20.2) | - | 108.6 | 136.6 | - | 84.0 | - | 220.6 | (112.0) | (50.8) | % | |||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® | - | 192.8 | 4.8 | - | 197.6 | - | 158.4 | 3.1 | - | 161.5 | 36.1 | 22.4 | % | |||||||||||||||||||||||||||||||||||
Eye Drops | 107.2 | - | 112.7 | - | 219.9 | 100.0 | - | 141.2 | - | 241.2 | (21.3) | (8.8) | % | |||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® | - | 56.3 | 20.0 | - | 76.3 | - | 70.8 | 24.1 | - | 94.9 | (18.6) | (19.6) | % | |||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables | 108.5 | - | 38.1 | - | 146.6 | 125.3 | - | 26.6 | - | 151.9 | (5.3) | (3.5) | % | |||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On | 33.3 | - | 22.2 | - | 55.5 | 70.1 | - | 13.5 | - | 83.6 | (28.1) | (33.6) | % | |||||||||||||||||||||||||||||||||||
Alloderm® | 196.2 | - | 3.8 | - | 200.0 | 206.6 | - | 4.5 | - | 211.1 | (11.1) | (5.3) | % | |||||||||||||||||||||||||||||||||||
Ozurdex ® | 60.2 | - | 144.1 | - | 204.3 | 53.1 | - | 132.3 | - | 185.4 | 18.9 | 10.2 | % | |||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® | - | 110.5 | 1.3 | - | 111.8 | - | 110.3 | 1.4 | - | 111.7 | 0.1 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Aczone® | 3.4 | - | - | - | 3.4 | 37.1 | - | 0.2 | - | 37.3 | (33.9) | (90.9) | % | |||||||||||||||||||||||||||||||||||
Zenpep® | - | 133.0 | - | - | 133.0 | - | 108.4 | - | - | 108.4 | 24.6 | 22.7 | % | |||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® | - | 18.2 | 7.7 | - | 25.9 | - | 83.6 | 8.7 | - | 92.3 | (66.4) | (71.9) | % | |||||||||||||||||||||||||||||||||||
Vraylar® | - | 339.8 | - | - | 339.8 | - | 198.6 | - | - | 198.6 | 141.2 | 71.1 | % | |||||||||||||||||||||||||||||||||||
Saphris® | - | 64.5 | - | - | 64.5 | - | 66.5 | - | - | 66.5 | (2.0) | (3.0) | % | |||||||||||||||||||||||||||||||||||
Viberzi® | - | 88.0 | 0.6 | - | 88.6 | - | 80.8 | 0.4 | - | 81.2 | 7.4 | 9.1 | % | |||||||||||||||||||||||||||||||||||
Teflaro® | - | 70.5 | 0.2 | - | 70.7 | - | 64.6 | 0.6 | - | 65.2 | 5.5 | 8.4 | % | |||||||||||||||||||||||||||||||||||
Namzaric® | - | 46.0 | - | - | 46.0 | - | 65.2 | - | - | 65.2 | (19.2) | (29.4) | % | |||||||||||||||||||||||||||||||||||
Rapaflo® | 16.3 | - | 2.0 | - | 18.3 | 42.5 | - | 2.8 | - | 45.3 | (27.0) | (59.6) | % | |||||||||||||||||||||||||||||||||||
Skin Care | 77.3 | - | 6.4 | - | 83.7 | 66.2 | - | 7.9 | - | 74.1 | 9.6 | 13.0 | % | |||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® | 15.8 | - | 2.2 | - | 18.0 | 19.4 | - | 3.7 | - | 23.1 | (5.1) | (22.1) | % | |||||||||||||||||||||||||||||||||||
Dalvance® | - | 32.3 | 2.2 | - | 34.5 | - | 29.6 | 1.3 | - | 30.9 | 3.6 | 11.7 | % | |||||||||||||||||||||||||||||||||||
Avycaz® | - | 56.4 | - | - | 56.4 | - | 45.3 | - | - | 45.3 | 11.1 | 24.5 | % | |||||||||||||||||||||||||||||||||||
Liletta® | - | 36.7 | - | - | 36.7 | - | 23.6 | - | - | 23.6 | 13.1 | 55.5 | % | |||||||||||||||||||||||||||||||||||
Namenda® | - | 15.6 | - | - | 15.6 | - | 44.0 | - | - | 44.0 | (28.4) | (64.5) | % | |||||||||||||||||||||||||||||||||||
Armour Thyroid | - | 106.7 | - | - | 106.7 | - | 97.4 | - | - | 97.4 | 9.3 | 9.5 | % | |||||||||||||||||||||||||||||||||||
Savella® | - | 43.0 | - | - | 43.0 | - | 39.0 | - | - | 39.0 | 4.0 | 10.3 | % | |||||||||||||||||||||||||||||||||||
Other Products Revenues | 131.2 | 387.9 | 167.2 | 4.4 | 690.7 | 158.7 | 383.2 | 196.5 | 34.4 | 772.8 | (82.1) | (10.6) | % | |||||||||||||||||||||||||||||||||||
Total Net Revenues | $ | 3,328.0 | $ | 2,705.6 | $ | 1,649.2 | $ | 4.4 | 7,687.2 | $ | 3,405.3 | $ | 2,543.7 | $ | 1,812.9 | $ | 34.4 | 7,796.3 | $ | (109.1) | (1.4) | % | ||||||||||||||||||||||||||
1Botox® is comprised of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||
Botox® Therapeutics | 844.6 | - | 192.7 | - | 1,037.3 | 797.8 | - | 200.8 | - | 998.6 | 38.7 | 3.9 | % | |||||||||||||||||||||||||||||||||||
Botox® Cosmetics | 481.9 | - | 323.2 | - | 805.1 | 433.2 | - | 320.0 | - | 753.2 | 51.9 | 6.9 | % | |||||||||||||||||||||||||||||||||||
The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018. | ||||||||
Table 3 | ||||||||
ALLERGAN PLC | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in millions) | ||||||||
June 30 | December 31, | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,651.4 | $ | 880.4 | ||||
Marketable securities | 322.3 | 1,026.9 | ||||||
Accounts receivable, net | 3,086.3 | 2,868.1 | ||||||
Inventories | 1,004.5 | 846.9 | ||||||
Prepaid expenses and other current assets | 2,508.3 | 819.1 | ||||||
Assets held for sale | 32.5 | 916.2 | ||||||
Property, plant and equipment, net | 1,821.0 | 1,787.0 | ||||||
Investments and other assets | 1,024.3 | 3,034.3 | ||||||
Right of use asset - operating leases | 457.9 | - | ||||||
Product rights and other intangibles | 41,231.5 | 43,695.4 | ||||||
Goodwill | 42,340.7 | 45,913.3 | ||||||
Total assets | $ | 95,480.7 | $ | 101,787.6 | ||||
Liabilities & Equity | ||||||||
Current liabilities | $ | 5,086.3 | $ | 4,859.6 | ||||
Lease liability | 538.0 | $ | - | |||||
Current and long-term debt and capital leases | 22,703.5 | 23,797.7 | ||||||
Deferred income taxes and other liabilities | 7,456.8 | 7,999.3 | ||||||
Total equity | 59,696.1 | 65,131.0 | ||||||
Total liabilities and equity | $ | 95,480.7 | $ | 101,787.6 | ||||
The following table presents Allergan plc's Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2019 and 2018. | ||||||||||||||||
Table 4 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Net (loss) / income | $ | (1,754.9) | $ | (470.1) | $ | (4,162.2) | $ | (754.0) | ||||||||
Reconciliation to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 48.7 | 49.1 | 96.2 | 105.2 | ||||||||||||
Amortization | 1,402.0 | 1,697.1 | 2,801.4 | 3,394.7 | ||||||||||||
Provision for inventory reserve | 64.6 | 31.2 | 83.4 | 45.4 | ||||||||||||
Share-based compensation | 59.5 | 54.9 | 111.8 | 127.4 | ||||||||||||
Deferred income tax benefit | 63.3 | (333.2) | (166.4) | (1,359.6) | ||||||||||||
In-process research and development impairments | 436.0 | 276.0 | 436.0 | 798.0 | ||||||||||||
Goodwill and other impairments and asset sales, net | 1,215.2 | 259.6 | 3,677.0 | 272.7 | ||||||||||||
Gain on forward sale of Teva shares | - | (138.6) | - | (60.9) | ||||||||||||
Gain on sale of business | - | (53.0) | - | (53.0) | ||||||||||||
Non-cash extinguishment of debt | (0.1) | 4.0 | 0.2 | 4.0 | ||||||||||||
Cash charge related to extinguishment of debt | - | (13.1) | - | (13.1) | ||||||||||||
Amortization of deferred financing costs | 4.5 | 5.6 | 9.1 | 11.9 | ||||||||||||
Non-cash lease expense | 37.9 | - | 68.0 | - | ||||||||||||
Contingent consideration adjustments, | 28.1 | (107.1) | 46.8 | (101.8) | ||||||||||||
Other, net | (9.0) | (6.8) | (19.3) | (0.3) | ||||||||||||
Changes in assets and liabilities (net of effects | ||||||||||||||||
Decrease / (increase) in accounts receivable, net | (353.0) | (168.8) | (220.6) | 90.3 | ||||||||||||
Decrease / (increase) in inventories | (51.0) | (60.6) | (179.3) | (113.3) | ||||||||||||
Decrease / (increase) in prepaid expenses | (12.3) | 39.9 | 23.9 | 39.3 | ||||||||||||
Increase / (decrease) in accounts payable | 361.4 | 191.2 | 161.6 | (40.4) | ||||||||||||
Increase / (decrease) in income and other | (104.2) | 28.8 | (44.2) | 365.4 | ||||||||||||
Increase / (decrease) in other assets and liabilities | (26.4) | (45.9) | (79.1) | (59.4) | ||||||||||||
Net cash provided by operating activities | 1,410.3 | 1,240.2 | 2,644.3 | 2,698.5 | ||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (87.5) | (60.1) | (152.3) | (106.5) | ||||||||||||
Additions to product rights and other intangibles | (38.5) | - | (46.0) | - | ||||||||||||
Additions to investments | (200.0) | - | (738.2) | (1,455.9) | ||||||||||||
Proceeds from sale of investments and other assets | 892.9 | 761.8 | 1,462.0 | 5,651.3 | ||||||||||||
Payments to settle Teva related matters | - | - | - | (466.0) | ||||||||||||
Proceeds from sales of property, plant and equipment | 0.5 | 0.4 | 17.7 | 11.5 | ||||||||||||
Acquisitions of businesses, net of cash acquired | - | - | (80.6) | - | ||||||||||||
Net cash (used in) investing activities | 567.4 | 702.1 | 462.6 | 3,634.4 | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Proceeds from borrowings on long-term indebtedness, including credit facility | 3.3 | - | 3.3 | 709.0 | ||||||||||||
Proceeds from Forward Sale of Teva securities | - | 93.2 | - | 465.5 | ||||||||||||
Payments on debt, including capital lease obligations | (879.7) | (1,031.6) | (1,039.1) | (5,353.7) | ||||||||||||
Proceeds from stock plans | 13.9 | 33.7 | 23.6 | 69.2 | ||||||||||||
Other financing, including contingent consideration | (2.1) | (1.3) | (4.1) | (10.6) | ||||||||||||
Payments to settle Teva related matters | - | - | - | (234.0) | ||||||||||||
Repurchase of ordinary shares | (4.3) | (132.5) | (833.5) | (1,572.1) | ||||||||||||
Dividends | (242.7) | (244.2) | (488.8) | (563.7) | ||||||||||||
Net cash (used in) financing activities | (1,111.6) | (1,282.7) | (2,338.6) | (6,490.4) | ||||||||||||
Effect of currency exchange rate changes on cash and cash equivalents | (3.2) | 20.3 | 2.7 | 15.0 | ||||||||||||
Net increase / (decrease) in cash and cash equivalents | 862.9 | 679.9 | 771.0 | (142.5) | ||||||||||||
Cash and cash equivalents at beginning of period | 788.5 | 994.8 | 880.4 | 1,817.2 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,651.4 | $ | 1,674.7 | $ | 1,651.4 | $ | 1,674.7 | ||||||||
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 June 30, 2019 and December 31, 2018 was $36.2 billion and $32.3 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 six months ended June 30, 2019 and 2018: | ||||||||||||||||||||||||||||||||||||||||
Table 5 | ||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC | ||||||||||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP ADJUSTMENTS | ||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Net Revenue | COGS | Research & Development | Selling & Marketing | General & Administrative | Amortization | Asset sales & | Interest expense, net | Other income (expense) | Income taxes | |||||||||||||||||||||||||||||||
GAAP | $ | 4,090.1 | $ | 652.3 | $ | 450.0 | $ | 873.3 | $ | 324.2 | $ | 1,402.0 | $ | 1,651.2 | $ | (185.7) | $ | (4.7) | $ | 301.6 | ||||||||||||||||||||
Purchase accounting impact on stock-based compensation for | - | (0.2) | (0.3) | (0.7) | (0.2) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring | - | (0.3) | - | (0.9) | (2.1) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with disposed businesses | - | - | - | - | (0.1) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Integration charges of acquired businesses | - | - | (0.4) | (0.1) | (4.0) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with the Abbvie transaction | - | - | - | - | (19.5) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent | - | (25.8) | (2.3) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in | - | - | - | - | - | - | - | (5.5) | - | - | ||||||||||||||||||||||||||||||
Impairment of goodwill | - | - | - | - | - | - | (1,085.2) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of Anti-Infective assets previously held for sale | - | - | - | - | - | - | (129.6) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan | - | - | - | - | - | - | (182.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D product acquired in the Vitae Acquisition | - | - | - | - | - | - | (78.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Tobira | - | - | - | - | - | - | (176.0) | - | - | - | ||||||||||||||||||||||||||||||
Asset sales and impairments, other | - | - | - | - | - | - | (0.4) | - | - | - | ||||||||||||||||||||||||||||||
Litigation settlement related charges | - | - | - | - | (7.8) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other adjustments | - | (0.1) | - | - | 0.7 | (1,402.0) | - | - | - | - | ||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments | - | - | - | - | - | - | - | - | - | 288.1 | ||||||||||||||||||||||||||||||
Discrete income tax events | - | - | - | - | - | - | - | - | - | (377.6) | ||||||||||||||||||||||||||||||
Non-GAAP Adjusted | $ | 4,090.1 | $ | 625.9 | $ | 447.0 | $ | 871.6 | $ | 291.2 | $ | - | $ | - | $ | (191.2) | $ | (4.7) | $ | 212.1 | ||||||||||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Net Revenue | COGS | Research & | Selling & | General & | Amortization | Asset sales & | Interest expense, net | Other income (expense) | Income taxes | |||||||||||||||||||||||||||||||
GAAP | $ | 4,124.2 | $ | 481.8 | $ | 689.2 | $ | 853.4 | $ | 334.1 | $ | 1,697.1 | $ | 535.6 | $ | (223.7) | $ | 215.4 | $ | (5.2) | ||||||||||||||||||||
Purchase accounting impact on stock-based compensation for | - | (0.4) | (0.8) | (1.7) | (0.5) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Severance due to integration of acquired entities | - | - | - | - | (0.3) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring | - | (9.3) | (0.3) | (6.9) | 3.0 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with disposed businesses | - | (1.0) | - | - | (0.7) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Integration charges of acquired businesses | - | - | (0.4) | (0.5) | (13.9) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions | ||||||||||||||||||||||||||||||||||||||||
Elastagen Pty Ltd | - | - | (96.1) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
AstraZeneca plc | - | - | (90.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Merck & Co. | - | - | (85.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other | - | - | (6.2) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent | - | 128.8 | (21.7) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in | - | - | - | - | - | - | - | (5.4) | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan | - | - | - | - | - | - | (236.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Vitae Acquisition | - | - | - | - | - | - | (40.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of assets held for sale | - | - | - | - | - | - | (252.0) | - | - | - | ||||||||||||||||||||||||||||||
Asset sales and impairments, other | - | - | - | - | - | - | (7.6) | - | - | - | ||||||||||||||||||||||||||||||
Gain on Teva shares | - | - | - | - | - | - | - | - | (138.3) | - | ||||||||||||||||||||||||||||||
Milestone component of ongoing intellectual property | (25.0) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Gain on the sale of divestiture | - | - | - | - | - | - | - | - | (53.0) | - | ||||||||||||||||||||||||||||||
Gain on bond repurchases | - | - | - | - | - | - | - | - | (9.1) | - | ||||||||||||||||||||||||||||||
Litigation settlement related charges | - | - | - | - | (29.0) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other adjustments | - | 0.1 | 0.2 | - | (2.6) | (1,697.1) | - | - | 0.1 | - | ||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments | - | - | - | - | - | - | - | - | - | 315.3 | ||||||||||||||||||||||||||||||
Discrete income tax events | - | - | - | - | - | - | - | - | - | (58.0) | ||||||||||||||||||||||||||||||
Non-GAAP Adjusted | $ | 4,099.2 | $ | 600.0 | $ | 388.9 | $ | 844.3 | $ | 290.1 | $ | - | $ | - | $ | (229.1) | $ | 15.1 | $ | 252.1 | ||||||||||||||||||||
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 in the three months ended June 30, 2019 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 June 30, 2019 excludes a net discrete tax detriment of $377.6 million related to a change in a valuation allowance and uncertain tax positions offset by the tax effects of intangible asset impairments and U.S. capital losses. | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Net Revenue | COGS | Research & Development | Selling & Marketing | General & Administrative | Amortization | Asset sales & | Interest expense, net | Other income (expense) | Income taxes | |||||||||||||||||||||||||||||||
GAAP | $ | 7,687.2 | $ | 1,150.1 | $ | 885.0 | $ | 1,677.3 | $ | 632.5 | $ | 2,801.4 | $ | 4,113.0 | $ | (366.2) | $ | 9.1 | $ | 233.0 | ||||||||||||||||||||
Purchase accounting impact on stock-based compensation for | - | (0.5) | (0.7) | (1.6) | (0.5) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Severance due to integration of acquired entities | - | - | - | - | (0.8) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring | - | (4.9) | - | 0.9 | (2.2) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with disposed businesses | - | - | - | - | (0.3) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Integration charges of acquired businesses | - | - | (0.5) | (0.1) | (8.3) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with the Abbvie transaction | - | - | - | - | (19.5) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions | ||||||||||||||||||||||||||||||||||||||||
Akarna Therapeutics, Ltd | - | - | (10.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other | - | - | (24.1) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent | - | (42.0) | (4.8) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in | - | - | - | - | - | - | - | (11.0) | - | - | ||||||||||||||||||||||||||||||
Impairment of goodwill | - | - | - | - | - | - | (3,552.2) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of Anti-Infective assets previously held for sale | (129.6) | |||||||||||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan | (182.0) | |||||||||||||||||||||||||||||||||||||||
Impairment of IPR&D product acquired in the Vitae Acquisition | (78.0) | |||||||||||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Tobira | (176.0) | |||||||||||||||||||||||||||||||||||||||
Asset sales and impairments, other | - | - | - | - | - | - | 4.8 | - | - | - | ||||||||||||||||||||||||||||||
Litigation settlement related charges | - | - | - | - | (18.2) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other adjustments | - | (0.1) | - | - | (0.2) | (2,801.4) | - | - | (0.3) | - | ||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments | - | - | - | - | - | - | - | - | - | 474.7 | ||||||||||||||||||||||||||||||
Discrete income tax events | - | - | - | - | - | - | - | - | - | (309.2) | ||||||||||||||||||||||||||||||
Non-GAAP Adjusted | $ | 7,687.2 | $ | 1,102.6 | $ | 844.9 | $ | 1,676.5 | $ | 582.5 | $ | - | $ | - | $ | (377.2) | $ | 8.8 | $ | 398.5 | ||||||||||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Net Revenue | COGS | Research & | Selling & | General & | Amortization | Asset sales & | Interest expense, net | Other income (expense) | Income taxes | |||||||||||||||||||||||||||||||
GAAP | $ | 7,796.3 | $ | 1,004.6 | $ | 1,163.9 | $ | 1,653.4 | $ | 630.0 | $ | 3,394.7 | $ | 1,070.7 | $ | (457.0) | $ | 136.6 | $ | (687.4) | ||||||||||||||||||||
Purchase accounting impact on stock-based compensation for | - | (1.5) | (3.6) | (6.0) | (2.1) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Severance due to integration of acquired entities | - | - | - | (0.7) | (0.8) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring | - | (21.9) | (0.9) | (17.2) | (4.3) | - | (13.6) | - | - | - | ||||||||||||||||||||||||||||||
Costs associated with disposed businesses | - | (1.5) | - | - | (3.3) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Integration charges of acquired businesses | - | - | (0.6) | (0.7) | (24.6) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Elastagen Pty Ltd | - | - | (96.1) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
AstraZeneca plc | - | - | (90.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Merck & Co. | - | - | (85.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Chase Pharmaceuticals Corporation | - | - | (75.0) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Repros Therapeutics, Inc. | - | - | (33.2) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other | - | - | (11.4) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent | - | 125.4 | (23.6) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in | - | - | - | - | - | - | - | (10.2) | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Allergan | - | - | - | - | - | - | (236.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of IPR&D products acquired in the Vitae | - | - | - | - | - | - | (40.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of assets held for sale | - | - | - | - | - | - | (252.0) | - | - | - | ||||||||||||||||||||||||||||||
Impairment of RORgt IPR&D product | - | - | - | - | - | - | (522.0) | - | - | - | ||||||||||||||||||||||||||||||
Asset sales and impairments, other | - | - | - | - | - | - | (7.1) | - | - | - | ||||||||||||||||||||||||||||||
Gain on Teva securities | - | - | - | - | - | - | - | - | (60.6) | - | ||||||||||||||||||||||||||||||
Milestone component of ongoing intellectual property | (25.0) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Gain on the sale of divestiture | - | - | - | - | - | - | - | - | (53.0) | - | ||||||||||||||||||||||||||||||
Gain on bond repurchases | - | - | - | - | - | - | - | - | (9.1) | - | ||||||||||||||||||||||||||||||
Litigation settlement related charges | - | - | - | - | (39.3) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Other adjustments | - | 0.1 | 0.2 | - | (1.3) | (3,394.7) | - | - | 0.1 | - | ||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments | - | - | - | - | - | - | - | - | - | 753.1 | ||||||||||||||||||||||||||||||
Discrete income tax events | - | - | - | - | - | - | - | - | - | 401.6 | ||||||||||||||||||||||||||||||
Non-GAAP Adjusted | $ | 7,771.3 | $ | 1,105.2 | $ | 744.7 | $ | 1,628.8 | $ | 554.3 | $ | - | $ | - | $ | (467.2) | $ | 14.0 | $ | 467.3 | ||||||||||||||||||||
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 in the six months ended June 30, 2019 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 six months ended June 30, 2019 excludes a net discrete tax detriment of $309.2 million related to a change in a valuation allowance and uncertain tax positions offset by the tax effects of intangible asset impairments and U.S. capital losses. | ||||||||||||||||||||||||||||||||||||||||
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 six months ended June 30, 2019 and 2018: | ||||||||||||||||
Table 6 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
RECONCILIATION TABLE | ||||||||||||||||
(Unaudited; in millions except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP to Non-GAAP Performance net income calculation | ||||||||||||||||
GAAP (loss) / income from continuing operations | $ | (1,759.0) | $ | (472.5) | $ | (4,167.0) | $ | (758.6) | ||||||||
Adjusted for: | ||||||||||||||||
Amortization | 1,402.0 | 1,697.1 | 2,801.4 | 3,394.7 | ||||||||||||
Acquisition, divestiture and licensing (income) / | 19.4 | 103.3 | 55.9 | 313.5 | ||||||||||||
Accretion and fair-value adjustments to contingent | 28.1 | (107.1) | 46.8 | (101.8) | ||||||||||||
Goodwill and other impairments and asset sales, net | 1,651.2 | 535.6 | 4,113.0 | 1,070.7 | ||||||||||||
Other | - | (34.2) | - | (34.2) | ||||||||||||
Non-acquisition restructurings, including Global Supply | 3.3 | 13.5 | 6.2 | 44.3 | ||||||||||||
Legal settlements | 7.8 | 29.0 | 18.2 | 39.3 | ||||||||||||
Income taxes on items above and other discrete | 89.5 | (257.3) | (165.5) | (1,154.7) | ||||||||||||
Non-GAAP performance net income attributable to | $ | 1,442.3 | $ | 1,507.4 | $ | 2,709.0 | $ | 2,813.2 | ||||||||
Diluted earnings per share | ||||||||||||||||
Diluted (loss) / income per share from continuing | $ | (5.37) | $ | (1.39) | $ | (12.63) | $ | (2.25) | ||||||||
Non-GAAP performance net income per share attributable | $ | 4.38 | $ | 4.42 | $ | 8.17 | $ | 8.16 | ||||||||
Basic weighted average ordinary shares outstanding | 327.8 | 339.1 | 329.9 | 336.9 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Dilutive shares | 1.6 | 2.2 | 1.8 | 8.0 | ||||||||||||
Diluted weighted average ordinary shares outstanding | 329.4 | 341.3 | 331.7 | 344.9 | ||||||||||||
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 fair value accounting results 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 six months ended June 30, 2019 and 2018 to adjusted EBITDA and Non-GAAP operating income: | ||||||||||||||||
Table 7 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
ADJUSTED EBITDA and NON-GAAP OPERATING INCOME, RECONCILIATION TABLE | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP (loss) / income from continuing operations attributable to | $ | (1,759.0) | $ | (472.5) | $ | (4,167.0) | $ | (758.6) | ||||||||
Plus: | ||||||||||||||||
Interest expense | 195.4 | 230.0 | 397.2 | 480.6 | ||||||||||||
Interest income | (9.7) | (6.3) | (31.0) | (23.6) | ||||||||||||
(Benefit) for income taxes | 301.6 | (5.2) | 233.0 | (687.4) | ||||||||||||
Depreciation | 48.7 | 49.1 | 96.2 | 105.2 | ||||||||||||
Amortization | 1,402.0 | 1,697.1 | 2,801.4 | 3,394.7 | ||||||||||||
EBITDA | $ | 179.0 | $ | 1,492.2 | $ | (670.2) | $ | 2,510.9 | ||||||||
Adjusted for: | ||||||||||||||||
Acquisition, divestiture and licensing charges | 23.5 | 105.3 | 63.6 | 302.3 | ||||||||||||
Goodwill and other impairments and asset sales, net and | 1,651.2 | 535.6 | 4,113.0 | 1,070.7 | ||||||||||||
Other | - | (34.2) | - | (34.2) | ||||||||||||
Non-acquisition restructurings, including Global Supply Chain | 3.3 | 10.5 | 6.2 | 41.3 | ||||||||||||
Legal settlements | 7.8 | 29.0 | 18.2 | 39.3 | ||||||||||||
Accretion and fair-value adjustments to contingent | 28.1 | (107.1) | 46.8 | (101.8) | ||||||||||||
Share-based compensation including cash settlements | 59.5 | 54.9 | 111.8 | 127.4 | ||||||||||||
Adjusted EBITDA | $ | 1,952.4 | $ | 2,086.2 | $ | 3,689.4 | $ | 3,955.9 | ||||||||
Adjusted for: | ||||||||||||||||
Depreciation | (48.7) | (46.1) | (96.2) | (102.2) | ||||||||||||
Other income (expense) related to fair value accounting | 4.7 | (14.8) | (8.8) | (14.8) | ||||||||||||
Share-based compensation not related to restructuring | (58.1) | (51.5) | (108.5) | (106.0) | ||||||||||||
Non-GAAP Operating Income | $ | 1,850.3 | $ | 1,973.8 | $ | 3,475.9 | $ | 3,732.9 | ||||||||
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 six months ended June 30, 2019 and 2018. | ||||||||||||||||||||||||||||||||||||||||
Table 8 | ||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC | ||||||||||||||||||||||||||||||||||||||||
Segment Contribution to Non-GAAP Allergan plc Contribution | ||||||||||||||||||||||||||||||||||||||||
(Unaudited; $ in millions) | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||
US Specialized Therapeutics Segment | US General Medicine Segment | International Segment | Corporate | Total | US Specialized Therapeutics Segment | US General Medicine Segment | International Segment | Corporate | Total | |||||||||||||||||||||||||||||||
Net revenues | $ | 1,785.1 | $ | 1,455.7 | $ | 847.7 | $ | 1.6 | $ | 4,090.1 | $ | 1,826.7 | $ | 1,320.0 | $ | 948.9 | $ | 3.6 | $ | 4,099.2 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of sales(1) | 151.0 | 231.3 | 145.6 | 98.0 | 625.9 | 148.7 | 201.8 | 139.4 | 110.1 | 600.0 | ||||||||||||||||||||||||||||||
Selling and marketing | 368.0 | 250.1 | 253.6 | (0.1) | 871.6 | 343.3 | 254.8 | 246.2 | - | 844.3 | ||||||||||||||||||||||||||||||
General and administrative | 37.6 | 30.4 | 28.4 | 194.8 | 291.2 | 48.1 | 34.7 | 33.9 | 173.4 | 290.1 | ||||||||||||||||||||||||||||||
Segment contribution | $ | 1,228.5 | $ | 943.9 | $ | 420.1 | $ | (291.1) | $ | 2,301.4 | $ | 1,286.6 | $ | 828.7 | $ | 529.4 | $ | (279.9) | $ | 2,364.8 | ||||||||||||||||||||
Segment margin | 68.8 | % | 64.8 | % | 49.6 | % | n.m. | 56.3 | % | 70.4 | % | 62.8 | % | 55.8 | % | n.m. | 57.7 | % | ||||||||||||||||||||||
Segment gross margin(2) | 91.5 | % | 84.1 | % | 82.8 | % | n.m. | 84.7 | % | 91.9 | % | 84.7 | % | 85.3 | % | n.m. | 85.4 | % | ||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||
US Specialized Therapeutics Segment | US General Medicine Segment | International Segment | Corporate | Total | US Specialized Therapeutics Segment | US General Medicine Segment | International Segment | Corporate | Total | |||||||||||||||||||||||||||||||
Net revenues | $ | 3,328.0 | $ | 2,705.6 | $ | 1,649.2 | $ | 4.4 | $ | 7,687.2 | $ | 3,405.3 | $ | 2,543.7 | $ | 1,812.9 | $ | 9.4 | $ | 7,771.3 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of sales(1) | 271.1 | 421.8 | 255.3 | 154.4 | 1,102.6 | 282.9 | 384.4 | 260.3 | 177.6 | 1,105.2 | ||||||||||||||||||||||||||||||
Selling and marketing | 724.8 | 460.6 | 491.2 | (0.1) | 1,676.5 | 656.5 | 480.3 | 491.9 | 0.1 | 1,628.8 | ||||||||||||||||||||||||||||||
General and administrative | 92.2 | 74.2 | 54.1 | 362.0 | 582.5 | 98.3 | 73.6 | 65.3 | 317.1 | 554.3 | ||||||||||||||||||||||||||||||
Segment contribution | $ | 2,239.9 | $ | 1,749.0 | $ | 848.6 | $ | (511.9) | $ | 4,325.6 | $ | 2,367.6 | $ | 1,605.4 | $ | 995.4 | $ | (485.4) | $ | 4,483.0 | ||||||||||||||||||||
Segment margin | 67.3 | % | 64.6 | % | 51.5 | % | n.m. | 56.3 | % | 69.5 | % | 63.1 | % | 54.9 | % | n.m. | 57.7 | % | ||||||||||||||||||||||
Segment gross margin(2) | 91.9 | % | 84.4 | % | 84.5 | % | n.m. | 85.7 | % | 91.7 | % | 84.9 | % | 85.6 | % | n.m. | 85.8 | % | ||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
The following table details Allergan plc's product revenue for significant promoted products within the US Specialized Therapeutics segment for the three and six months ended June 30, 2019 and 2018. | ||||||||||||||||
Table 9 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
US Specialized Therapeutics Product Revenue | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Eye Care | $ | 572.0 | $ | 587.0 | $ | (15.0) | (2.6) | % | ||||||||
Restasis® | 310.9 | 318.2 | (7.3) | (2.3) | % | |||||||||||
Alphagan®/Combigan® | 91.6 | 98.1 | (6.5) | (6.6) | % | |||||||||||
Lumigan®/Ganfort® | 62.1 | 73.0 | (10.9) | (14.9) | % | |||||||||||
Ozurdex® | 29.9 | 27.6 | 2.3 | 8.3 | % | |||||||||||
Eye Drops | 57.8 | 53.8 | 4.0 | 7.4 | % | |||||||||||
Other Eye Care | 19.7 | 16.3 | 3.4 | 20.9 | % | |||||||||||
Total Medical Aesthetics | 735.5 | 743.6 | (8.1) | (1.1) | % | |||||||||||
Facial Aesthetics | 417.5 | 387.5 | 30.0 | 7.7 | % | |||||||||||
Botox®Cosmetics | 252.4 | 236.5 | 15.9 | 6.7 | % | |||||||||||
Juvederm®Collection | 156.6 | 139.8 | 16.8 | 12.0 | % | |||||||||||
Kybella® | 8.5 | 11.2 | (2.7) | (24.1) | % | |||||||||||
Plastic Surgery | 67.6 | 75.9 | (8.3) | (10.9) | % | |||||||||||
Breast Implants | 67.6 | 75.9 | (8.3) | (10.9) | % | |||||||||||
Regenerative Medicine | 128.9 | 137.6 | (8.7) | (6.3) | % | |||||||||||
Alloderm® | 101.2 | 107.1 | (5.9) | (5.5) | % | |||||||||||
Other Regenerative Medicine | 27.7 | 30.5 | (2.8) | (9.2) | % | |||||||||||
Body Contouring | 78.9 | 108.3 | (29.4) | (27.1) | % | |||||||||||
Coolsculpting®Systems & Add On | 18.2 | 36.4 | (18.2) | (50.0) | % | |||||||||||
Coolsculpting®Consumables | 60.7 | 71.9 | (11.2) | (15.6) | % | |||||||||||
Skin Care(3) | 42.6 | 34.3 | 8.3 | 24.2 | % | |||||||||||
Total Medical Dermatology | 9.3 | 39.2 | (29.9) | (76.3) | % | |||||||||||
Aczone® | 1.8 | 21.1 | (19.3) | (91.5) | % | |||||||||||
Other Medical Dermatology(4) | 7.5 | 18.1 | (10.6) | (58.6) | % | |||||||||||
Total Neuroscience & Urology | 451.5 | 441.7 | 9.8 | 2.2 | % | |||||||||||
Botox®Therapeutics(5) | 447.0 | 422.0 | 25.0 | 5.9 | % | |||||||||||
Rapaflo® | 4.5 | 19.7 | (15.2) | (77.2) | % | |||||||||||
Other Revenues | 16.8 | 15.2 | 1.6 | 10.5 | % | |||||||||||
Net Revenues | $ | 1,785.1 | $ | 1,826.7 | $ | (41.6) | (2.3) | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 151.0 | 148.7 | 2.3 | 1.5 | % | |||||||||||
Selling and marketing | 368.0 | 343.3 | 24.7 | 7.2 | % | |||||||||||
General and administrative | 37.6 | 48.1 | (10.5) | (21.8) | % | |||||||||||
Segment contribution | $ | 1,228.5 | $ | 1,286.6 | $ | (58.1) | (4.5) | % | ||||||||
Segment margin | 68.8 | % | 70.4 | % | (1.6) | % | ||||||||||
Segment gross margin(2) | 91.5 | % | 91.9 | % | (0.4) | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes SkinMedica® and Latisse®. | ||||||||||||||||
(4) Includes Tazorac® sales of $6.4 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
(5) Includes Botox® Hyperhidrosis of $17.3 million which was previously disclosed under Medical Dermatology in the three months ended June 30, 2018. | ||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Eye Care | $ | 1,037.1 | $ | 1,078.1 | $ | (41.0) | (3.8) | % | ||||||||
Restasis® | 542.6 | 574.0 | (31.4) | (5.5) | % | |||||||||||
Alphagan®/Combigan® | 174.6 | 182.3 | (7.7) | (4.2) | % | |||||||||||
Lumigan®/Ganfort® | 119.8 | 139.8 | (20.0) | (14.3) | % | |||||||||||
Ozurdex® | 60.2 | 53.1 | 7.1 | 13.4 | % | |||||||||||
Eye Drops | 107.2 | 100.0 | 7.2 | 7.2 | % | |||||||||||
Other Eye Care | 32.7 | 28.9 | 3.8 | 13.1 | % | |||||||||||
Total Medical Aesthetics | 1,383.7 | 1,379.2 | 4.5 | 0.3 | % | |||||||||||
Facial Aesthetics | 784.0 | 715.2 | 68.8 | 9.6 | % | |||||||||||
Botox®Cosmetics | 481.9 | 433.2 | 48.7 | 11.2 | % | |||||||||||
Juvederm®Collection | 286.3 | 262.6 | 23.7 | 9.0 | % | |||||||||||
Kybella® | 15.8 | 19.4 | (3.6) | (18.6) | % | |||||||||||
Plastic Surgery | 128.8 | 136.6 | (7.8) | (5.7) | % | |||||||||||
Breast Implants | 128.8 | 136.6 | (7.8) | (5.7) | % | |||||||||||
Regenerative Medicine | 251.8 | 265.8 | (14.0) | (5.3) | % | |||||||||||
Alloderm® | 196.2 | 206.6 | (10.4) | (5.0) | % | |||||||||||
Other Regenerative Medicine | 55.6 | 59.2 | (3.6) | (6.1) | % | |||||||||||
Body Contouring | 141.8 | 195.4 | (53.6) | (27.4) | % | |||||||||||
Coolsculpting®Systems & Add On | 33.3 | 70.1 | (36.8) | (52.5) | % | |||||||||||
Coolsculpting®Consumables | 108.5 | 125.3 | (16.8) | (13.4) | % | |||||||||||
Skin Care(3) | 77.3 | 66.2 | 11.1 | 16.8 | % | |||||||||||
Total Medical Dermatology | 15.4 | 75.9 | (60.5) | (79.7) | % | |||||||||||
Aczone® | 3.4 | 37.1 | (33.7) | (90.8) | % | |||||||||||
Other Medical Dermatology(4) | 12.0 | 38.8 | (26.8) | (69.1) | % | |||||||||||
Total Neuroscience & Urology | 860.9 | 840.3 | 20.6 | 2.5 | % | |||||||||||
Botox®Therapeutics(5) | 844.6 | 797.8 | 46.8 | 5.9 | % | |||||||||||
Rapaflo® | 16.3 | 42.5 | (26.2) | (61.6) | % | |||||||||||
Other Revenues | 30.9 | 31.8 | (0.9) | (2.8) | % | |||||||||||
Net Revenues | $ | 3,328.0 | $ | 3,405.3 | $ | (77.3) | (2.3) | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 271.1 | 282.9 | (11.8) | (4.2) | % | |||||||||||
Selling and marketing | 724.8 | 656.5 | 68.3 | 10.4 | % | |||||||||||
General and administrative | 92.2 | 98.3 | (6.1) | (6.2) | % | |||||||||||
Segment contribution | $ | 2,239.9 | $ | 2,367.6 | $ | (127.7) | (5.4) | % | ||||||||
Segment margin | 67.3 | % | 69.5 | % | (2.2) | % | ||||||||||
Segment gross margin(2) | 91.9 | % | 91.7 | % | 0.2 | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes SkinMedica® and Latisse®. | ||||||||||||||||
(4) Includes Tazorac® sales of $15.8 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
(5) Includes Botox® Hyperhidrosis of $34.6 million which was previously disclosed under Medical Dermatology in the six months ended June 30, 2018. | ||||||||||||||||
The following table details Allergan plc's product revenue for significant promoted products within the US General Medicine segment for the three and six months ended June 30, 2019 and 2018. | ||||||||||||||||
Table 10 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
US General Medicine Product Revenue | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Central Nervous System (CNS) | $ | 365.2 | $ | 269.9 | $ | 95.3 | 35.3 | % | ||||||||
Vraylar® | 196.1 | 114.2 | 81.9 | 71.7 | % | |||||||||||
Viibryd®/Fetzima® | 107.8 | 86.7 | 21.1 | 24.3 | % | |||||||||||
Saphris® | 32.6 | 33.8 | (1.2) | (3.6) | % | |||||||||||
Namzaric® | 22.6 | 31.8 | (9.2) | (28.9) | % | |||||||||||
Namenda ®(3) | 6.1 | 3.4 | 2.7 | 79.4 | % | |||||||||||
Total Gastrointestinal (GI) | 419.2 | 431.9 | (12.7) | (2.9) | % | |||||||||||
Linzess® | 196.0 | 191.8 | 4.2 | 2.2 | % | |||||||||||
Zenpep® | 70.0 | 55.5 | 14.5 | 26.1 | % | |||||||||||
Carafate®/Sulcrate® | 56.2 | 54.3 | 1.9 | 3.5 | % | |||||||||||
Viberzi® | 50.8 | 44.9 | 5.9 | 13.1 | % | |||||||||||
Asacol®/Delzicol® | 31.6 | 32.6 | (1.0) | (3.1) | % | |||||||||||
Canasa®/Salofalk® | 8.0 | 45.0 | (37.0) | (82.2) | % | |||||||||||
Other GI | 6.6 | 7.8 | (1.2) | (15.4) | % | |||||||||||
Total Women's Health | 226.0 | 196.5 | 29.5 | 15.0 | % | |||||||||||
Lo Loestrin® | 145.5 | 127.8 | 17.7 | 13.8 | % | |||||||||||
Liletta® | 21.9 | 15.5 | 6.4 | 41.3 | % | |||||||||||
Other Women's Health(4)(5) | 58.6 | 53.2 | 5.4 | 10.2 | % | |||||||||||
Total Anti-Infectives | 91.4 | 79.8 | 11.6 | 14.5 | % | |||||||||||
Teflaro® | 37.0 | 32.4 | 4.6 | 14.2 | % | |||||||||||
Avycaz® | 26.7 | 23.5 | 3.2 | 13.6 | % | |||||||||||
Dalvance® | 20.3 | 17.7 | 2.6 | 14.7 | % | |||||||||||
Other Anti-Infectives | 7.4 | 6.2 | 1.2 | 19.4 | % | |||||||||||
Diversified Brands | 306.0 | 284.9 | 21.1 | 7.4 | % | |||||||||||
Bystolic®/Byvalson® | 150.5 | 148.1 | 2.4 | 1.6 | % | |||||||||||
Armour Thyroid | 56.7 | 49.2 | 7.5 | 15.2 | % | |||||||||||
Savella® | 22.3 | 19.1 | 3.2 | 16.8 | % | |||||||||||
Other Diversified Brands(6)(7) | 76.5 | 68.5 | 8.0 | 11.7 | % | |||||||||||
Other Revenues | 47.9 | 57.0 | (9.1) | (16.0) | % | |||||||||||
Net revenues | $ | 1,455.7 | $ | 1,320.0 | $ | 135.7 | 10.3 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 231.3 | 201.8 | 29.5 | 14.6 | % | |||||||||||
Selling and marketing | 250.1 | 254.8 | (4.7) | (1.8) | % | |||||||||||
General and administrative | 30.4 | 34.7 | (4.3) | (12.4) | % | |||||||||||
Segment contribution | $ | 943.9 | $ | 828.7 | $ | 115.2 | 13.9 | % | ||||||||
Segment margin | 64.8 | % | 62.8 | % | 2.0 | % | ||||||||||
Segment gross margin(2) | 84.1 | % | 84.7 | % | (0.6) | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes Namenda XR® and Namenda® IR. | ||||||||||||||||
(4) Includes Estrace® Cream sales of $13.1 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
(5) Includes Minastrin® 24 sales of $0.8 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
(6) Includes Lexapro® sales of $14.5 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
(7) Includes PacPharma sales of $3.7 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Central Nervous System (CNS) | $ | 658.7 | $ | 532.7 | $ | 126.0 | 23.7 | % | ||||||||
Namenda® | 15.6 | 44.0 | (28.4) | (64.5) | % | |||||||||||
Namzaric® | 46.0 | 65.2 | (19.2) | (29.4) | % | |||||||||||
Viibryd®/Fetzima® | 192.8 | 158.4 | 34.4 | 21.7 | % | |||||||||||
Saphris® | 64.5 | 66.5 | (2.0) | (3.0) | % | |||||||||||
Vraylartm | 339.8 | 198.6 | 141.2 | 71.1 | % | |||||||||||
Total Gastrointestinal (GI) | 777.4 | 820.6 | (43.2) | (5.3) | % | |||||||||||
Linzess® | 357.3 | 351.1 | 6.2 | 1.8 | % | |||||||||||
Asacol®/Delzicol® | 56.3 | 70.8 | (14.5) | (20.5) | % | |||||||||||
Carafate®/Sulcrate® | 110.5 | 110.3 | 0.2 | 0.2 | % | |||||||||||
Zenpep® | 133.0 | 108.4 | 24.6 | 22.7 | % | |||||||||||
Canasa®/Salofalk® | 18.2 | 83.6 | (65.4) | (78.2) | % | |||||||||||
Viberzi® | 88.0 | 80.8 | 7.2 | 8.9 | % | |||||||||||
Other GI | 14.1 | 15.6 | (1.5) | (9.6) | % | |||||||||||
Total Women's Health | 427.0 | 359.8 | 67.2 | 18.7 | % | |||||||||||
Lo Loestrin® | 271.3 | 242.4 | 28.9 | 11.9 | % | |||||||||||
Liletta® | 36.7 | 23.6 | 13.1 | 55.5 | % | |||||||||||
Other Women's Health(4)(5) | 119.0 | 93.8 | 25.2 | 26.9 | % | |||||||||||
Total Anti-Infectives | 173.0 | 151.4 | 21.6 | 14.3 | % | |||||||||||
Teflaro® | 70.5 | 64.6 | 5.9 | 9.1 | % | |||||||||||
Dalvance® | 32.3 | 29.6 | 2.7 | 9.1 | % | |||||||||||
Avycaz® | 56.4 | 45.3 | 11.1 | 24.5 | % | |||||||||||
Other Anti-Infectives | 13.8 | 11.9 | 1.9 | 16.0 | % | |||||||||||
Diversified Brands | 576.9 | 559.8 | 17.1 | 3.1 | % | |||||||||||
Bystolic®/Byvalson® | 278.8 | 280.9 | (2.1) | (0.7) | % | |||||||||||
Armour Thyroid | 106.7 | 97.4 | 9.3 | 9.5 | % | |||||||||||
Savella® | 43.0 | 39.0 | 4.0 | 10.3 | % | |||||||||||
Other Diversified Brands(6)(7) | 148.4 | 142.5 | 5.9 | 4.1 | % | |||||||||||
Other Revenues | 92.6 | 119.4 | (26.8) | (22.4) | % | |||||||||||
Net revenues | $ | 2,705.6 | $ | 2,543.7 | $ | 161.9 | 6.4 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 421.8 | 384.4 | 37.4 | 9.7 | % | |||||||||||
Selling and marketing | 460.6 | 480.3 | (19.7) | (4.1) | % | |||||||||||
General and administrative | 74.2 | 73.6 | 0.6 | 0.8 | % | |||||||||||
Segment contribution | $ | 1,749.0 | $ | 1,605.4 | $ | 143.6 | 8.9 | % | ||||||||
Segment margin | 64.6 | % | 63.1 | % | 1.5 | % | ||||||||||
Segment gross margin(2) | 84.4 | % | 84.9 | % | (0.5) | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes Namenda XR® and Namenda® IR. | ||||||||||||||||
(4) Includes Estrace® Cream sales of $19.5 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
(5) Includes Minastrin® 24 sales of $6.0 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
(6) Includes Lexapro® sales of $29.2 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
(7) Includes PacPharma sales of $8.1 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
The following table details Allergan plc's product revenue for significant promoted products within the International segment for the three and six months ended June 30, 2019 and 2018. | ||||||||||||||||
Table 11 | ||||||||||||||||
ALLERGAN PLC | ||||||||||||||||
International Product Revenue | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Eye Care | $ | 327.0 | $ | 353.7 | $ | (26.7) | (7.5) | % | ||||||||
Lumigan®/Ganfort® | 90.4 | 100.5 | (10.1) | (10.0) | % | |||||||||||
Alphagan®/Combigan® | 40.9 | 44.6 | (3.7) | (8.3) | % | |||||||||||
Ozurdex® | 81.0 | 67.9 | 13.1 | 19.3 | % | |||||||||||
Eye Drops(3) | 57.3 | 72.4 | (15.1) | (20.9) | % | |||||||||||
Restasis® | 11.9 | 16.0 | (4.1) | (25.6) | % | |||||||||||
Other Eye Care | 45.5 | 52.3 | (6.8) | (13.0) | % | |||||||||||
Total Medical Aesthetics | 357.2 | 409.8 | (52.6) | (12.8) | % | |||||||||||
Facial Aesthetics | 349.1 | 329.8 | 19.3 | 5.9 | % | |||||||||||
Botox®Cosmetics | 175.8 | 171.4 | 4.4 | 2.6 | % | |||||||||||
Juvederm®Collection | 172.7 | 156.1 | 16.6 | 10.6 | % | |||||||||||
Belkyra®(Kybella®) | 0.6 | 2.3 | (1.7) | (73.9) | % | |||||||||||
Plastic Surgery | (31.1) | 40.3 | (71.4) | (177.2) | % | |||||||||||
Breast Implants | (31.4) | 39.9 | (71.3) | (178.7) | % | |||||||||||
Other Plastic Surgery | 0.3 | 0.4 | (0.1) | (25.0) | % | |||||||||||
Regenerative Medicine | 3.6 | 4.7 | (1.1) | (23.4) | % | |||||||||||
Alloderm® | 2.2 | 2.3 | (0.1) | (4.3) | % | |||||||||||
Other Regenerative Medicine | 1.4 | 2.4 | (1.0) | (41.7) | % | |||||||||||
Body Contouring | 31.9 | 30.9 | 1.0 | 3.2 | % | |||||||||||
Coolsculpting®Systems & Add On Applicators | 11.6 | 12.4 | (0.8) | (6.5) | % | |||||||||||
Coolsculpting®Consumables | 20.3 | 18.5 | 1.8 | 9.7 | % | |||||||||||
Skin Care | 3.7 | 4.1 | (0.4) | (9.8) | % | |||||||||||
Botox® Therapeutics and Other | 148.9 | 166.6 | (17.7) | (10.6) | % | |||||||||||
Botox®Therapeutics | 98.8 | 104.6 | (5.8) | (5.5) | % | |||||||||||
Asacol®/Delzicol® | 9.7 | 12.4 | (2.7) | (21.8) | % | |||||||||||
Constella® | 4.8 | 6.4 | (1.6) | (25.0) | % | |||||||||||
Other Products | 35.6 | 43.2 | (7.6) | (17.6) | % | |||||||||||
Other Revenues | 14.6 | 18.8 | (4.2) | (22.3) | % | |||||||||||
Net revenues | $ | 847.7 | $ | 948.9 | $ | (101.2) | (10.7) | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 145.6 | 139.4 | 6.2 | 4.4 | % | |||||||||||
Selling and marketing | 253.6 | 246.2 | 7.4 | 3.0 | % | |||||||||||
General and administrative | 28.4 | 33.9 | (5.5) | (16.2) | % | |||||||||||
Segment contribution | $ | 420.1 | $ | 529.4 | $ | (109.3) | (20.6) | % | ||||||||
Segment margin | 49.6 | % | 55.8 | % | (6.2) | % | ||||||||||
Segment gross margin(2) | 82.8 | % | 85.3 | % | (2.5) | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes Optive® sales of $30.7 million which were previously disclosed separately in the three months ended June 30, 2018. | ||||||||||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2019 | 2018 | Dollars | % | |||||||||||||
Total Eye Care | $ | 618.8 | $ | 697.4 | $ | (78.6) | (11.3) | % | ||||||||
Lumigan®/Ganfort® | 175.5 | 200.9 | (25.4) | (12.6) | % | |||||||||||
Alphagan®/Combigan® | 78.5 | 88.8 | (10.3) | (11.6) | % | |||||||||||
Ozurdex® | 144.1 | 132.3 | 11.8 | 8.9 | % | |||||||||||
Eye Drops(3) | 112.7 | 141.2 | (28.5) | (20.2) | % | |||||||||||
Restasis® | 22.3 | 34.3 | (12.0) | (35.0) | % | |||||||||||
Other Eye Care | 85.7 | 99.9 | (14.2) | (14.2) | % | |||||||||||
Total Medical Aesthetics | 710.0 | 768.3 | (58.3) | (7.6) | % | |||||||||||
Facial Aesthetics | 655.9 | 625.9 | 30.0 | 4.8 | % | |||||||||||
Botox®Cosmetics | 323.2 | 320.0 | 3.2 | 1.0 | % | |||||||||||
Juvederm®Collection | 330.5 | 302.2 | 28.3 | 9.4 | % | |||||||||||
Belkyra®(Kybella®) | 2.2 | 3.7 | (1.5) | (40.5) | % | |||||||||||
Plastic Surgery | (19.5) | 84.8 | (104.3) | (123.0) | % | |||||||||||
Breast Implants | (20.2) | 84.0 | (104.2) | (124.0) | % | |||||||||||
Other Plastic Surgery | 0.7 | 0.8 | (0.1) | (12.5) | % | |||||||||||
Regenerative Medicine | 6.9 | 9.6 | (2.7) | (28.1) | % | |||||||||||
Alloderm® | 3.8 | 4.5 | (0.7) | (15.6) | % | |||||||||||
Other Regenerative Medicine | 3.1 | 5.1 | (2.0) | (39.2) | % | |||||||||||
Body Contouring | 60.3 | 40.1 | 20.2 | 50.4 | % | |||||||||||
Coolsculpting®Systems & Add On Applicators | 22.2 | 13.5 | 8.7 | 64.4 | % | |||||||||||
Coolsculpting®Consumables | 38.1 | 26.6 | 11.5 | 43.2 | % | |||||||||||
Skin Care | 6.4 | 7.9 | (1.5) | (19.0) | % | |||||||||||
Botox® Therapeutics and Other | 287.7 | 316.3 | (28.6) | (9.0) | % | |||||||||||
Botox®Therapeutics | 192.7 | 200.8 | (8.1) | (4.0) | % | |||||||||||
Asacol®/Delzicol® | 20.0 | 24.1 | (4.1) | (17.0) | % | |||||||||||
Constella® | 10.3 | 12.0 | (1.7) | (14.2) | % | |||||||||||
Other Products | 64.7 | 79.4 | (14.7) | (18.5) | % | |||||||||||
Other Revenues | 32.7 | 30.9 | 1.8 | 5.8 | % | |||||||||||
Net revenues | $ | 1,649.2 | $ | 1,812.9 | $ | (163.7) | (9.0) | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales(1) | 255.3 | 260.3 | (5.0) | (1.9) | % | |||||||||||
Selling and marketing | 491.2 | 491.9 | (0.7) | (0.1) | % | |||||||||||
General and administrative | 54.1 | 65.3 | (11.2) | (17.2) | % | |||||||||||
Segment contribution | $ | 848.6 | $ | 995.4 | $ | (146.8) | (14.7) | % | ||||||||
Segment margin | 51.5 | % | 54.9 | % | (3.4) | % | ||||||||||
Segment gross margin(2) | 84.5 | % | 85.6 | % | (1.1) | % | ||||||||||
(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. | ||||||||||||||||
(3) Includes Optive® sales of $58.5 million which were previously disclosed separately in the six months ended June 30, 2018. | ||||||||||||||||
The following table provides a reconciliation of anticipated GAAP loss / income from continuing operations to non-GAAP performance net income attributable to shareholders for the twelve months ending December 31, 2019: | |||
Table 12 | |||
Twelve months ending | |||
(in millions, except per share information) | LOW | ||
GAAP income/(loss) from continuing operations attributable to shareholders | $ | (3,957.0) | |
Adjusted for: | |||
Amortization | 5,690.0 | ||
Acquisition, divestiture, licensing and other non-recurring charges | 113.0 | ||
Accretion and fair-value adjustments to contingent consideration | 58.0 | ||
Impairment/asset sales and related costs | 4,115.0 | ||
Non-acquisition restructurings, including Global Supply Chain initiatives | 6.0 | ||
Legal settlements | 18.0 | ||
Income taxes on items above and other discrete income tax | (548.0) | ||
Non-GAAP performance net income attributable to shareholders | 5,495.0 | ||
Diluted earnings per share | |||
Diluted (loss) / income per share from continuing operations attributable to | $ | (12.03) | |
Non-GAAP performance diluted net income per share attributable to | $ | 16.55 | |
Basic weighted average ordinary shares outstanding | 329.0 | ||
Effect of dilutive securities: | |||
Dilutive shares | 3.0 | ||
Diluted weighted average ordinary shares outstanding | 332.0 | ||
SOURCE Allergan plc
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