Allergan (NYSE:AGN) shares rose by 4% on Tuesday after the company said it will buy back up to $10bn in stock following a swing to a first-quarter profit on a surge in sales of key drugs, including the wrinkle and muscle spasm treatment Botox.
The share buyback plan is contingent on the sale of the drug developer's generics unit to Tel-Aviv-listed Teva (TLV:TEVA), which is expected to close by the end of the year.
Meanwhile, the company is consolidating its executive team under current CEO Brent Saunders.
Dublin-based Allergan recorded a swing to a first-quarter profit of $255.7mln, or 47 cents per share, after reporting a loss in the same period a year earlier.
Earnings, adjusted for one-time gains and costs, were $3.04 per share. That exceeded Wall Street expectations.
Revenue jumped 48% to $3.8bn in the period. The key revenue driver was Botox, with global sales surging to $637.5 million from $84 million. The drug is approved to treat wrinkles, muscle spasms, and for bladder control.
Allergan expects full-year revenue of $17bn.
Executive changes at the company include consolidating some responsibilities under the new roles of chief commercial officer and chief operating officer. Bill Meury has been appointed chief commercial officer and Robert Stewart has been appointed chief operating officer.
A month ago Pfizer (NYSE:PFE) and Allergan called off a proposed merger after the US Treasury changed rules making it less tax-advantageous.
Allergan shares rose 3.27% to $220.70 on Tuesday.