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Medical technology & services

Allergan Q4 earnings top Wall Street forecasts; migraine drug succeeds in late-stage trial

It was a double dose of good news for Allergan investors: Q4 results came in better than expected, while ubrogepant succeeded in a key trial

Allergan PLC (NYSE:AGN) delivered a double dose of good news to shareholders on Tuesday, as the Botox maker topped Wall Street forecasts with its fourth-quarter earnings, while it also said the first of two late-stage trials for its migraine treatment was successful.

The Dublin-based pharma group revealed that migraine sufferers using its drug were relieved after two hours and did not experience migraine symptoms, meeting the primary endpoint of the study.

READ: Allergan lands FDA approval for schizophrenia drug

Data from the second trial is due in the second half of this year, after which Allergan expects to file a marketing application for ubrogepant – likely in 2019.

Tuesday’s results should ease some investor concern at a time when Allergan faces the threat of competition from generic drug makers.

Fourth-quarter figures were also good. Allergan reported a net loss of US$90.5mln in the three months through to December 31, compared with US$900mln in the year-earlier quarter.

However, once costs associated with its restructuring program and other one-time items were excluded, the company earned US$2.17bn or US$4.86 a share – above estimates of US$4.74 a share.

Revenues for the period rose 12% to US$4.33bn – also above expectations of US$4.28bn – helped by sales of Botox which jumped 17% year-on-year to US$864.3mln.

“2017 was a pivotal year for Allergan and we delivered solid results,” said chairman and chief executive Brent Saunders.

“We powered strong revenue growth of our top products and in each of our regions.”

Allergan shares were up 0.8% to US$166.28 shortly before the opening bell in New York.

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