Powerhouse US drugs group and the maker of botox, Allergan PLC (NYSE:AGN) flexed its muscles on Wednesday, and saw shares rise, despite posting a third quarter loss.
The firm reported a net loss of US$4.03bn, or $12.07 per share, compared with a profit of US$15.15bn or US$38.58 per share a year earlier, but it was still better than what Wall Street had expected.
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Shares added 4.442% to US$185.06 a pop in New York.
YahooFinance: Allergan third-quarter revenue rises 11.4 percent https://t.co/qmCzySTdwU pic.twitter.com/HrAmPMVE6t
— serge poznanski (@serge_poznanski) 1 November 2017
The strong performance can be attributed to the firm's medical aesthetics business, which includes botox, and its eye care businesses.
Medical aesthetics sales came in at US$602.3mln in the three months, up nearly 55% on last year, while sales of dry-eye drug Restasis came in at $382.3mln.
The group said it took an impairment charge of US$3.2bn related to Restasis after a court ruling last month invalidated its patents, making it possible for rivals to hit the market next year.
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Allergan also took a US$1.3bn impairment charge related to its stake in Teva securities.
Net revenue rose 11.4 % in the quarter to US$4.03bn, matching analysts' expectations.
Significantly, Allergan lifted its expectations for 2017 profit, saying it expects adjusted earnings in a range of US$16.15 to US$16.45 per share, compared to a previous range of US$16.05 to US$16.45.