Allergan Reports Fourth Quarter and Full-Year 2018 Financial Results
- Full-Year 2018 GAAP Net Revenues of $15.8 Billion; Q4 2018 GAAP Net Revenues of $4.1 Billion -
- Full-Year 2018 GAAP Loss Per Share of $15.26; Non-GAAP Performance Net Income Per Share of $16.69 -
- Q4 2018 GAAP Loss Per Share of $12.83; Non-GAAP Performance Net Income Per Share of $4.29 -
- Q4 2018 GAAP Operating Loss of $5.38 Billion; Non-GAAP Operating Income of $1.92 Billion -
- Full-Year and Q4 2018 GAAP Net Revenue Driven by Growth in Top Promoted Products Including BOTOX®, VRAYLAR®, JUVÉDERM® Collection of Fillers and Lo LOESTRIN® -
- Continues to Advance R&D Pipeline on Key Programs Including Cariprazine for Bipolar Depression, Ubrogepant for Migraine and Bimatoprost SR for Glaucoma -
- Provides Full-Year and First Quarter 2019 Guidance -
- Allergan Board of Directors Authorizes New $2.0 Billion Share Repurchase Program -
DUBLIN, Jan. 29, 2019 /PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its full-year and fourth quarter 2018 financial results including full-year 2018 GAAP net revenues of $15.79 billion, a 1.0 percent decrease from 2017. Fourth quarter 2018 GAAP net revenues were $4.08 billion, a 5.7 percent decrease from the prior year quarter.
FOURTH QUARTER AND FULL-YEAR 2018 FINANCIAL RESULTS |
|||||||||||||||||||||||||
(unaudited; $ in millions, except per share amounts) |
Q4 '18 |
Q4 '17 |
Q4 '18 v Q4 '17 |
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
2018 v 2017 |
|||||||||||||||||||
Total Net Revenues |
$ |
4,079.7 |
$ |
4,326.1 |
(5.7) |
% |
$ |
15,787.4 |
$ |
15,940.7 |
(1.0) |
% |
|||||||||||||
Operating (Loss) |
$ |
(5,384.1) |
$ |
(90.5) |
n.m. |
$ |
(6,247.6) |
$ |
(5,921.2) |
(5.5) |
% |
||||||||||||||
Diluted EPS - Continuing Operations |
$ |
(12.83) |
$ |
9.97 |
n.m. |
$ |
(15.26) |
$ |
(11.99) |
(27.3) |
% |
||||||||||||||
SG&A Expense |
$ |
1,193.6 |
$ |
1,266.8 |
(5.8) |
% |
$ |
4,521.8 |
$ |
5,016.7 |
(9.9) |
% |
|||||||||||||
R&D Expense |
$ |
678.1 |
$ |
408.2 |
66.1 |
% |
$ |
2,266.2 |
$ |
2,100.1 |
7.9 |
% |
|||||||||||||
Continuing Operations Tax Rate |
23.2 |
% |
956.1 |
% |
n.m. |
25.8 |
% |
64.2 |
% |
38.4 |
% |
||||||||||||||
Non-GAAP Net Revenues |
$ |
4,079.7 |
$ |
4,326.1 |
(5.7) |
% |
$ |
15,762.4 |
$ |
15,940.7 |
(1.1) |
% |
|||||||||||||
Non-GAAP Operating Income |
$ |
1,917.8 |
$ |
2,174.3 |
(11.8) |
% |
$ |
7,555.8 |
$ |
7,647.5 |
(1.2) |
% |
|||||||||||||
Non-GAAP Performance Net Income Per Share |
$ |
4.29 |
$ |
4.86 |
(11.7) |
% |
$ |
16.69 |
$ |
16.35 |
2.1 |
% |
|||||||||||||
Non-GAAP Adjusted EBITDA |
$ |
1,990.5 |
$ |
2,284.5 |
(12.9) |
% |
$ |
7,954.1 |
$ |
8,097.6 |
(1.8) |
% |
|||||||||||||
Non-GAAP SG&A Expense |
$ |
1,140.4 |
$ |
1,132.8 |
0.7 |
% |
$ |
4,354.9 |
$ |
4,554.8 |
(4.4) |
% |
|||||||||||||
Non-GAAP R&D Expense |
$ |
436.1 |
$ |
405.7 |
7.5 |
% |
$ |
1,574.5 |
$ |
1,598.8 |
(1.5) |
% |
|||||||||||||
Non-GAAP Continuing Operations Tax Rate |
14.3 |
% |
11.4 |
% |
2.9 |
% |
14.2 |
% |
12.6 |
% |
1.6 |
% |
|||||||||||||
Executive Commentary
"Allergan posted another quarter of strong results to close out 2018, underscoring our focus on execution, financial discipline and the strength of our core business which grew 8.3 percent. Our anchor brands BOTOX® Cosmetic, BOTOX® Therapeutic, VRAYLAR®, JUVÉDERM®, Lo LOESTRIN®, CoolSculpting® and LINZESS® added nearly $1 billion in new revenue to our core business in 2018," said Brent Saunders, Chairman and CEO of Allergan. "I'm also proud of the significant advances we have made in our R&D pipeline with positive clinical results reported from six late-stage development programs. We look to build on that progress in 2019."
"Taken together, these accomplishments and our talented colleagues give me confidence in our ability to continue producing solid results in 2019 and beyond, while also delivering innovation that will have an enduring impact on patients, customers and shareholders."
Full-Year 2018 Performance
GAAP operating loss in 2018 was $6.25 billion compared with $5.92 billion in 2017. Non-GAAP operating income, which excludes the impact of impairments, amortization and other items, was $7.56 billion in 2018 compared to $7.65 billion in 2017, impacted by lower revenues as operating margin remained stable. GAAP cash flow from operations for the full year of 2018 totaled $5.64 billion.
Fourth Quarter 2018 Performance
GAAP operating loss in the fourth quarter 2018 was $5.38 billion, including the impact of impairments. Non-GAAP operating income in the fourth quarter of 2018 was $1.92 billion, a decrease of 11.8 percent versus the prior year quarter, impacted by lower operating margin and revenues due to the impact of divestitures, products that lost exclusivity and a decline in RESTASIS®. GAAP cash flow from operations for the fourth quarter of 2018 totaled $1.50 billion.
Operating Expenses
Total GAAP Selling, General and Administrative (SG&A) Expense was $1.19 billion for the fourth quarter 2018, a decrease of 5.8 percent from the prior year quarter. Total non-GAAP SG&A expense was $1.14 billion for the fourth quarter 2018 compared with $1.13 billion in the prior year period, including an increase in selling and marketing spending in Medical Aesthetics offset by the impact of previous restructurings. GAAP R&D investment for the fourth quarter of 2018 was $678.1 million, compared to $408.2 million in the fourth quarter of 2017. Non-GAAP R&D investment for the fourth quarter 2018 was $436.1 million compared to $405.7 million in the prior year quarter, due to increased direct project spend to support pipeline advancement.
Amortization, Tax and Capitalization
Amortization expense for the fourth quarter 2018 was $1.57 billion, compared to $1.92 billion in the fourth quarter of 2017. The Company's GAAP tax rate was 23.2 percent in the fourth quarter 2018. The Company's non-GAAP adjusted tax rate was 14.3 percent in the fourth quarter 2018. As of December 31, 2018, Allergan had cash and marketable securities of $1.91 billion and outstanding indebtedness of $23.8 billion.
Impairments
In the fourth quarter of 2018, Allergan recorded total pre-tax impairment charges of $5.4 billion. This amount reflects $1.9 billion of other intangible asset impairments, including $1.6 billion for KYBELLA®/BELKYRA® as sales forecasts have declined. The Company's intended sale of Anti-Infectives and its increased cost of capital based on market dynamics as well as other commercial factors prompted a review of its General Medicine Reporting Unit goodwill. As a result, the Company wrote off $3.5 billion of total goodwill, including $622 million allocated to Anti-Infectives.
FOURTH QUARTER 2018 BUSINESS SEGMENT RESULTS
U.S. Specialized Therapeutics
U.S. Specialized Therapeutics net revenues were $1.81 billion in the fourth quarter of 2018, a decrease of 3.9 percent versus the prior year quarter. Volume demand growth in BOTOX® Therapeutic and Facial Aesthetics, including BOTOX® Cosmetic and JUVÉDERM® Collection, was offset in part by a decline in RESTASIS® due to lower demand and net pricing, as well as the divestiture of the Company's Medical Dermatology business on September 20, 2018. Segment gross margin for the fourth quarter of 2018 was 92.3 percent. Segment contribution for the fourth quarter 2018 was $1.23 billion.
Medical Aesthetics
- Facial Aesthetics
- BOTOX® Cosmetic net revenues in the fourth quarter of 2018 were $258.1 million, an increase of 13.0 percent from the prior year quarter.
- JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the fourth quarter of 2018 were $158.4 million, an increase of 13.5 percent versus the prior year quarter.
- Regenerative Medicine
- ALLODERM® net revenues in the fourth quarter of 2018 were $94.9 million, a decrease of 3.1 percent versus the prior year quarter.
- Body Contouring
- CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the fourth quarter of 2018 were $81.3 million, a decrease of 13.9 percent versus the prior year quarter.
Neurosciences & Urology
- BOTOX® Therapeutic net revenues in the fourth quarter of 2018 were $433.3 million, an increase of 12.8 percent versus the prior year quarter.
Eye Care
- RESTASIS® net revenues in the fourth quarter of 2018 were $325.0 million, a decrease of 18.8 percent versus the prior year quarter.
- ALPHAGAN®/COMBIGAN® net revenues in the fourth quarter of 2018 were $97.7 million, a decrease of 4.0 percent versus the prior year quarter.
- OZURDEX® net revenues in the fourth quarter of 2018 were $29.3 million, an increase of 11.0 percent versus the prior year quarter.
U.S. General Medicine
U.S. General Medicine net revenues in the fourth quarter of 2018 were $1.40 billion, a decrease of 8.4 percent versus the prior year quarter, impacted by lower revenues from NAMENDA XR® and ESTRACE® due to generic competition, offset by growth from VRAYLAR® and Lo LOESTRIN®. Segment gross margin for the fourth quarter of 2018 was 86.0 percent. Segment contribution for the fourth quarter 2018 was $946.6 million.
Central Nervous System
- VRAYLAR® net revenues were $150.5 million in the fourth quarter of 2018, an increase of 71.6 percent from the prior year quarter.
- VIIBRYD®/FETZIMA® net revenues in the fourth quarter of 2018 were $95.5 million, an increase of 7.3 percent from the prior year quarter.
- NAMENDA® net revenues in the fourth quarter of 2018 were $10.7 million compared to $97.8 million in the prior year quarter, impacted by loss of patent exclusivity for NAMENDA XR® in February 2018.
Gastrointestinal, Women's Health & Diversified Brands
- LINZESS® net revenues in the fourth quarter of 2018 were $205.2 million, an increase of 5.3 percent versus the prior year quarter.
- Lo LOESTRIN® net revenues in the fourth quarter of 2018 were $143.8 million, an increase of 13.7 percent versus the prior year quarter.
- BYSTOLIC®/BYVALSON® net revenues in the fourth quarter of 2018 were $151.7 million, a decrease of 3.7 percent from the prior year quarter.
International
International net revenues in the fourth quarter of 2018 were $870.2 million, an increase of 1.0 percent versus the prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics and BOTOX® Therapeutic. International net revenues were negatively impacted by a recall of textured breast implants in certain international markets as well as reduced OZURDEX® sales following a third quarter product recall in certain markets. Segment gross margin for the fourth quarter of 2018 was 83.2 percent, also impacted by the textured breast implant recall. Segment contribution was $452.0 million.
Facial Aesthetics
- BOTOX® Cosmetic net revenues in the fourth quarter of 2018 were $157.8 million, an increase of 9.2 percent versus the prior year quarter excluding foreign exchange impact.
- JUVÉDERM® Collection net revenues in the fourth quarter of 2018 were $174.0 million, an increase of 20.4 percent versus the prior year quarter excluding foreign exchange impact.
Eye Care
- LUMIGAN®/GANFORT® net revenues in the fourth quarter of 2018 were $96.9 million, an increase of 2.2 percent versus the prior year quarter excluding foreign exchange impact.
- OZURDEX® net revenues in the fourth quarter of 2018 were $29.6 million compared to $60.9 million in the prior year quarter.
Botox® Therapeutic
- BOTOX® Therapeutic net revenues in the fourth quarter of 2018 were $96.7 million, an increase of 6.6 percent versus the prior year quarter excluding foreign exchange impact.
NEW SHARE REPURCHASE PROGRAM
Allergan's Board of Directors has authorized a new $2.0 billion share repurchase program as part of the Company's capital allocation strategy. Allergan expects to deploy the program over the next 12 months.
Allergan reaffirmed its commitment to maintaining investment grade credit ratings and achieving a net debt to adjusted EBITDA ratio of less than 2.5X by the end of 2020.
These actions reflect the Company's conviction in its strategy and strong future cash flow position, allowing for periodic return of cash to shareholders through dividends and share buybacks while maintaining investment grade ratings and continuing its strategy to pay down debt.
PIPELINE UPDATE
Allergan R&D continues to advance its pipeline. Key 2018 late stage clinical achievements and anticipated milestones include:
- Cariprazine: Allergan anticipates a regulatory decision from the U.S. Food and Drug Administration (FDA) in the first half of 2019 for the Company's supplemental New Drug Application (sNDA) for VRAYLAR® (cariprazine). The FDA accepted for review Allergan's sNDA seeking to expand the indication to include the treatment of depressive episodes associated with bipolar I disorder (bipolar depression) in adults. In 2018, Allergan reported positive Phase 3 results in the third of three pivotal trials of cariprazine in bipolar depression.
- Ubrogepant: Allergan anticipates filing a New Drug Application (NDA) with the FDA by the first quarter of 2019 for ubrogepant for the acute treatment of migraine. In 2018, Allergan reported positive results from two Phase 3 clinical trials studying the safety and efficacy of ubrogepant, an oral CGRP receptor antagonist, as well as two positive safety studies, including a long-term safety study of ubrogepant for acute migraine.
- Atogepant: Allergan announced positive results from a Phase 2b/3 clinical trial evaluating the efficacy, safety, and tolerability of atogepant, an oral CGRP receptor antagonist in development for migraine prevention. A Phase 3 study has been initiated.
- Bimatoprost SR: Allergan reported positive topline results from two Phase 3 clinical trials of Bimatoprost SR, a first-in-class sustained-release, biodegradable implant for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. Allergan anticipates submitting an NDA to the FDA in the second half of 2019.
- Abicipar: Allergan and Molecular Partners announced two positive Phase 3 clinical trials on Abicipar for the treatment of neovascular age-related macular degeneration. The Biologics License Application (BLA) submission for Abicipar is planned for the first half of 2019. Allergan anticipates results from the MAPLE trial using its further optimized formulation in the first half of 2019.
- Brimonidine DDS: Allergan reported positive results in Phase 2b clinical trials for Brimonidine DDS for geographic atrophy secondary to age-related macular degeneration. Allergan plans to initiate Phase 3 clinical trials in the second half of 2019.
FIRST QUARTER AND FULL YEAR 2019 GUIDANCE |
||
Twelve Months Ending December 31, 2019 |
||
GAAP |
NON-GAAP |
|
Total Net Revenues |
$15.000 - $15.300 billion |
$15.000 - $15.300 billion |
Gross Margin (as a % of revenues) |
85.0% - 85.5% |
85.0% - 85.5% |
SG&A Expense |
$4.1 - $4.3 billion |
$4.1 - $4.3 billion |
R&D Expense |
$1.8 - $1.9 billion |
$1.6 - $1.7 billion |
Net Interest Expense/Other Income (Expense) |
~ $775.0 million |
~ $800.0 million |
Tax Rate |
24.5% - 25.0% |
13.0% - 13.5% |
Net Income Per Share1 |
≥$1.14 |
≥$16.36 |
Average 2018 Share Count2 |
~ 332.0 million |
~ 332.0 million |
Cash Flow from Operations |
~ $5.0 - $5.5 billion |
N/A |
Three Months Ending March 31, 2019 |
||
GAAP |
NON-GAAP |
|
Total Net Revenues |
$3.400 - $3.550 billion |
$3.400 - $3.550 billion |
Net Income / (Loss) Per Share1,2 |
$(0.39) - $(0.20) |
$3.40 - $3.60 |
(1) GAAP represents EPS for ordinary shareholders. GAAP income per share includes the impact of amortization of approximately $5.6 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. |
FOURTH QUARTER AND FULL-YEAR 2018 CONFERENCE CALL AND WEBCAST DETAILS
Allergan will host a conference call and webcast today, Tuesday, January 29, at 8:30 a.m. Eastern Time to discuss its fourth quarter and full-year 2018 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 8599848. A 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 February 28, 2019. The replay may be accessed by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID 8599848.
To access the webcast, please visit Allergan's Investor Relations website at https://www.allergan.com/investors. A replay of the webcast will also be available on Allergan's Investor Relations website.
Allergan Contacts: |
|
Investors: |
|
Manisha Narasimhan, PhD |
(862) 261-7162 |
Christine Chiou |
(862) 261-7396 |
Media: |
|
Amy Rose |
(862) 289-3072 |
About Allergan plc
Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical leader. 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 primarily focused on four key therapeutic areas including medical aesthetics, eye care, central nervous system and gastroenterology.
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; 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; 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, 2017 and Allergan's Quarterly Report on Form 10-Q for the period ended September 30, 2018. 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, 2018 and 2017: |
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Table 1 |
|||||||||||||||||
ALLERGAN PLC |
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(Unaudited; in millions, except per share amounts) |
|||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||
December 31 |
December 31 |
||||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||||
Net revenues |
$ |
4,079.7 |
$ |
4,326.1 |
$ |
15,787.4 |
$ |
15,940.7 |
|||||||||
Operating expenses: |
|||||||||||||||||
Cost of sales (excludes amortization and impairment of |
590.0 |
580.9 |
2,191.4 |
2,168.0 |
|||||||||||||
Research and development |
678.1 |
408.2 |
2,266.2 |
2,100.1 |
|||||||||||||
Selling, general and administrative |
1,193.6 |
1,266.8 |
4,521.8 |
5,016.7 |
|||||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||||
In-process research and development impairments |
6.6 |
207.0 |
804.6 |
1,452.3 |
|||||||||||||
Goodwill and other impairments and asset sales, net |
5,426.4 |
31.5 |
5,698.7 |
3,927.7 |
|||||||||||||
Total operating expenses |
9,463.8 |
4,416.6 |
22,035.0 |
21,861.9 |
|||||||||||||
Operating (loss) |
(5,384.1) |
(90.5) |
(6,247.6) |
(5,921.2) |
|||||||||||||
Non-operating income (expense): |
|||||||||||||||||
Interest income |
11.6 |
14.7 |
45.2 |
67.7 |
|||||||||||||
Interest (expense) |
(210.2) |
(263.3) |
(911.2) |
(1,095.6) |
|||||||||||||
Other income (expense), net |
(9.9) |
(70.7) |
256.7 |
(3,437.3) |
|||||||||||||
Total other income (expense), net |
(208.5) |
(319.3) |
(609.3) |
(4,465.2) |
|||||||||||||
(Loss) before income taxes and noncontrolling interest |
(5,592.6) |
(409.8) |
(6,856.9) |
(10,386.4) |
|||||||||||||
(Benefit) for income taxes |
(1,296.7) |
(3,918.3) |
(1,770.7) |
(6,670.4) |
|||||||||||||
(Loss) from continuing operations, net of tax |
(4,295.9) |
3,508.5 |
(5,086.2) |
(3,716.0) |
|||||||||||||
(Loss) from discontinued operations, net of tax |
- |
(385.3) |
- |
(402.9) |
|||||||||||||
Net (loss) / income |
(4,295.9) |
3,123.2 |
(5,086.2) |
(4,118.9) |
|||||||||||||
(Income) attributable to noncontrolling interest |
(4.0) |
(1.9) |
(10.2) |
(6.6) |
|||||||||||||
Net (loss) /income attributable to shareholders |
(4,299.9) |
3,121.3 |
(5,096.4) |
(4,125.5) |
|||||||||||||
Dividends on preferred shares |
- |
69.6 |
46.4 |
278.4 |
|||||||||||||
Net (loss) / income attributable to ordinary shareholders |
$ |
(4,299.9) |
$ |
3,051.7 |
$ |
(5,142.8) |
$ |
(4,403.9) |
|||||||||
(Loss) / income per share attributable to ordinary shareholders - basic: |
|||||||||||||||||
Continuing operations |
$ |
(12.83) |
$ |
10.37 |
$ |
(15.26) |
$ |
(11.99) |
|||||||||
Discontinued operations |
- |
(1.16) |
- |
(1.20) |
|||||||||||||
Net (loss) / income per share - basic |
$ |
(12.83) |
$ |
9.21 |
$ |
(15.26) |
$ |
(13.19) |
|||||||||
(Loss) /income per share attributable to ordinary shareholders - diluted: |
|||||||||||||||||
Continuing operations |
$ |
(12.83) |
$ |
9.97 |
$ |
(15.26) |
$ |
(11.99) |
|||||||||
Discontinued operations |
- |
(1.09) |
- |
(1.20) |
|||||||||||||
Net (loss) /income per share - diluted |
$ |
(12.83) |
$ |
8.88 |
$ |
(15.26) |
$ |
(13.19) |
|||||||||
Dividends per ordinary share |
$ |
0.72 |
$ |
0.70 |
$ |
2.88 |
$ |
2.80 |
|||||||||
Weighted average shares outstanding: |
|||||||||||||||||
Basic |
335.1 |
331.3 |
337.0 |
333.8 |
|||||||||||||
Diluted |
335.1 |
351.6 |
337.0 |
333.8 |
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, 2018 and 2017. |
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ALLERGAN PLC |
||||||||||||||||||||||||||||||||||||||||||||||||
NET REVENUES TOP GLOBAL PRODUCTS |
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 |
Three Months Ended December 31, 2017 |
Movement |
||||||||||||||||||||||||||||||||||||||||||||||
US Specialized Therapeutics |
US General Medicine |
International |
Corporate |
Total |
US Specialized Therapeutics |
US General Medicine |
International |
Corporate |
Total |
Total Change |
Total Change Percentage |
|||||||||||||||||||||||||||||||||||||
Botox® |
$ |
691.4 |
$ |
- |
$ |
254.5 |
$ |
- |
$ |
945.9 |
$ |
612.4 |
$ |
- |
$ |
251.9 |
$ |
- |
$ |
864.3 |
$ |
81.6 |
9.4 |
% |
||||||||||||||||||||||||
Restasis® |
325.0 |
- |
16.6 |
- |
341.6 |
400.3 |
- |
14.6 |
- |
414.9 |
(73.3) |
(17.7) |
% |
|||||||||||||||||||||||||||||||||||
Juvederm® Collection |
158.4 |
- |
174.0 |
- |
332.4 |
139.5 |
- |
154.7 |
- |
294.2 |
38.2 |
13.0 |
% |
|||||||||||||||||||||||||||||||||||
Linzess®/Constella® |
- |
205.2 |
6.4 |
- |
211.6 |
- |
194.8 |
5.8 |
- |
200.6 |
11.0 |
5.5 |
% |
|||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® |
74.0 |
- |
96.9 |
- |
170.9 |
80.9 |
- |
99.7 |
- |
180.6 |
(9.7) |
(5.4) |
% |
|||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® |
- |
151.7 |
0.4 |
- |
152.1 |
- |
157.5 |
0.6 |
- |
158.1 |
(6.0) |
(3.8) |
% |
|||||||||||||||||||||||||||||||||||
Vraylar® |
- |
150.5 |
- |
- |
150.5 |
- |
87.7 |
- |
- |
87.7 |
62.8 |
71.6 |
% |
|||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® |
97.7 |
- |
46.7 |
- |
144.4 |
101.8 |
- |
46.7 |
- |
148.5 |
(4.1) |
(2.8) |
% |
|||||||||||||||||||||||||||||||||||
Lo Loestrin® |
- |
143.8 |
- |
- |
143.8 |
- |
126.5 |
- |
- |
126.5 |
17.3 |
13.7 |
% |
|||||||||||||||||||||||||||||||||||
Eye Drops |
47.9 |
- |
71.7 |
- |
119.6 |
47.3 |
- |
73.8 |
- |
121.1 |
(1.5) |
(1.2) |
% |
|||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® |
- |
95.5 |
2.3 |
- |
97.8 |
- |
89.0 |
1.0 |
- |
90.0 |
7.8 |
8.7 |
% |
|||||||||||||||||||||||||||||||||||
Alloderm® |
94.9 |
- |
2.5 |
- |
97.4 |
97.9 |
- |
2.5 |
- |
100.4 |
(3.0) |
(3.0) |
% |
|||||||||||||||||||||||||||||||||||
Breast Implants |
68.2 |
- |
10.5 |
- |
78.7 |
69.0 |
- |
40.1 |
- |
109.1 |
(30.4) |
(27.9) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables |
54.5 |
- |
23.4 |
- |
77.9 |
51.9 |
- |
15.3 |
- |
67.2 |
10.7 |
15.9 |
% |
|||||||||||||||||||||||||||||||||||
Zenpep® |
- |
66.8 |
0.4 |
- |
67.2 |
- |
58.5 |
- |
- |
58.5 |
8.7 |
14.9 |
% |
|||||||||||||||||||||||||||||||||||
Ozurdex ® |
29.3 |
- |
29.6 |
- |
58.9 |
26.4 |
- |
60.9 |
- |
87.3 |
(28.4) |
(32.5) |
% |
|||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® |
- |
54.1 |
0.7 |
- |
54.8 |
- |
59.2 |
0.8 |
- |
60.0 |
(5.2) |
(8.7) |
% |
|||||||||||||||||||||||||||||||||||
Armour Thyroid |
- |
53.4 |
- |
- |
53.4 |
- |
51.3 |
- |
- |
51.3 |
2.1 |
4.1 |
% |
|||||||||||||||||||||||||||||||||||
Viberzi® |
- |
48.9 |
0.6 |
- |
49.5 |
- |
42.9 |
0.2 |
- |
43.1 |
6.4 |
14.8 |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On Applicators |
26.8 |
- |
21.5 |
- |
48.3 |
42.5 |
- |
11.7 |
- |
54.2 |
(5.9) |
(10.9) |
% |
|||||||||||||||||||||||||||||||||||
Skin Care |
40.4 |
- |
3.6 |
- |
44.0 |
40.6 |
- |
4.4 |
- |
45.0 |
(1.0) |
(2.2) |
% |
|||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® |
- |
38.8 |
4.5 |
- |
43.3 |
- |
47.0 |
5.0 |
- |
52.0 |
(8.7) |
(16.7) |
% |
|||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® |
- |
27.9 |
10.7 |
- |
38.6 |
- |
42.8 |
13.4 |
- |
56.2 |
(17.6) |
(31.3) |
% |
|||||||||||||||||||||||||||||||||||
Saphris® |
- |
36.8 |
- |
- |
36.8 |
- |
37.7 |
- |
- |
37.7 |
(0.9) |
(2.4) |
% |
|||||||||||||||||||||||||||||||||||
Teflaro® |
- |
30.0 |
- |
- |
30.0 |
- |
29.2 |
- |
- |
29.2 |
0.8 |
2.7 |
% |
|||||||||||||||||||||||||||||||||||
Avycaz® |
- |
24.6 |
- |
- |
24.6 |
- |
18.5 |
- |
- |
18.5 |
6.1 |
33.0 |
% |
|||||||||||||||||||||||||||||||||||
Savella® |
- |
23.6 |
- |
- |
23.6 |
- |
23.9 |
- |
- |
23.9 |
(0.3) |
(1.3) |
% |
|||||||||||||||||||||||||||||||||||
Namzaric® |
- |
22.6 |
- |
- |
22.6 |
- |
36.8 |
- |
- |
36.8 |
(14.2) |
(38.6) |
% |
|||||||||||||||||||||||||||||||||||
Rapaflo® |
18.9 |
- |
1.8 |
- |
20.7 |
28.2 |
- |
1.8 |
- |
30.0 |
(9.3) |
(31.0) |
% |
|||||||||||||||||||||||||||||||||||
Dalvance® |
- |
17.3 |
1.0 |
- |
18.3 |
- |
13.0 |
1.2 |
- |
14.2 |
4.1 |
28.9 |
% |
|||||||||||||||||||||||||||||||||||
Estrace® Cream |
- |
14.7 |
- |
- |
14.7 |
- |
101.5 |
- |
- |
101.5 |
(86.8) |
(85.5) |
% |
|||||||||||||||||||||||||||||||||||
Liletta® |
- |
14.6 |
- |
- |
14.6 |
- |
14.5 |
- |
- |
14.5 |
0.1 |
0.7 |
% |
|||||||||||||||||||||||||||||||||||
Namenda® |
- |
10.7 |
- |
- |
10.7 |
- |
97.8 |
- |
- |
97.8 |
(87.1) |
(89.1) |
% |
|||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® |
7.2 |
- |
1.0 |
- |
8.2 |
12.1 |
- |
1.7 |
- |
13.8 |
(5.6) |
(40.6) |
% |
|||||||||||||||||||||||||||||||||||
Minastrin® 24 |
- |
2.9 |
- |
- |
2.9 |
- |
5.3 |
- |
- |
5.3 |
(2.4) |
(45.3) |
% |
|||||||||||||||||||||||||||||||||||
Aczone® |
0.6 |
- |
0.1 |
- |
0.7 |
38.0 |
- |
0.2 |
- |
38.2 |
(37.5) |
(98.2) |
% |
|||||||||||||||||||||||||||||||||||
Tazorac® |
0.3 |
- |
0.1 |
- |
0.4 |
14.1 |
- |
0.2 |
- |
14.3 |
(13.9) |
(97.2) |
% |
|||||||||||||||||||||||||||||||||||
Other Products Revenues |
73.3 |
163.5 |
88.7 |
2.8 |
328.3 |
78.9 |
189.9 |
107.7 |
3.1 |
379.6 |
(51.3) |
(13.5) |
% |
|||||||||||||||||||||||||||||||||||
Total Net Revenues |
$ |
1,808.8 |
$ |
1,397.9 |
$ |
870.2 |
$ |
2.8 |
4,079.7 |
$ |
1,881.8 |
$ |
1,525.3 |
$ |
915.9 |
$ |
3.1 |
4,326.1 |
$ |
(246.4) |
(5.7) |
% |
||||||||||||||||||||||||||
Year Ended December 31, 2018 |
Year Ended December 31, 2017 |
Movement |
||||||||||||||||||||||||||||||||||||||||||||||
US Specialized Therapeutics |
US General Medicine |
International |
Corporate |
Total |
US Specialized Therapeutics |
US General Medicine |
International |
Corporate |
Total |
Total Change |
Total Change Percentage |
|||||||||||||||||||||||||||||||||||||
Botox® |
$ |
2,545.8 |
$ |
- |
$ |
1,031.6 |
$ |
- |
$ |
3,577.4 |
$ |
2,254.4 |
$ |
- |
$ |
914.5 |
$ |
- |
$ |
3,168.9 |
$ |
408.5 |
12.9 |
% |
||||||||||||||||||||||||
Restasis® |
1,197.0 |
- |
64.5 |
- |
1,261.5 |
1,412.3 |
- |
61.3 |
- |
1,473.6 |
(212.1) |
(14.4) |
% |
|||||||||||||||||||||||||||||||||||
Juvederm® Collection |
548.2 |
- |
614.8 |
- |
1,163.0 |
501.1 |
- |
540.7 |
- |
1,041.8 |
121.2 |
11.6 |
% |
|||||||||||||||||||||||||||||||||||
Linzess®/Constella® |
- |
761.1 |
24.1 |
- |
785.2 |
- |
701.1 |
21.9 |
- |
723.0 |
62.2 |
8.6 |
% |
|||||||||||||||||||||||||||||||||||
Lumigan®/Ganfort® |
291.8 |
- |
392.6 |
- |
684.4 |
317.5 |
- |
371.5 |
- |
689.0 |
(4.6) |
(0.7) |
% |
|||||||||||||||||||||||||||||||||||
Bystolic® /Byvalson® |
- |
583.8 |
2.0 |
- |
585.8 |
- |
612.2 |
2.2 |
- |
614.4 |
(28.6) |
(4.7) |
% |
|||||||||||||||||||||||||||||||||||
Alphagan®/Combigan® |
375.4 |
- |
176.0 |
- |
551.4 |
377.3 |
- |
175.1 |
- |
552.4 |
(1.0) |
(0.2) |
% |
|||||||||||||||||||||||||||||||||||
Lo Loestrin® |
- |
527.7 |
- |
- |
527.7 |
- |
459.3 |
- |
- |
459.3 |
68.4 |
14.9 |
% |
|||||||||||||||||||||||||||||||||||
Vraylar® |
- |
487.1 |
- |
- |
487.1 |
- |
287.8 |
- |
- |
287.8 |
199.3 |
69.2 |
% |
|||||||||||||||||||||||||||||||||||
Eye Drops |
202.7 |
- |
279.7 |
- |
482.4 |
199.5 |
- |
281.0 |
- |
480.5 |
1.9 |
0.4 |
% |
|||||||||||||||||||||||||||||||||||
Alloderm® |
407.3 |
- |
8.0 |
- |
415.3 |
321.2 |
- |
7.5 |
- |
328.7 |
86.6 |
26.3 |
% |
|||||||||||||||||||||||||||||||||||
Viibryd®/Fetzima® |
- |
342.4 |
7.2 |
- |
349.6 |
- |
333.2 |
3.1 |
- |
336.3 |
13.3 |
4.0 |
% |
|||||||||||||||||||||||||||||||||||
Breast Implants |
263.0 |
- |
130.1 |
- |
393.1 |
242.6 |
- |
156.9 |
- |
399.5 |
(6.4) |
(1.6) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Consumables |
235.3 |
- |
64.2 |
- |
299.5 |
150.1 |
- |
41.6 |
- |
191.7 |
107.8 |
56.2 |
% |
|||||||||||||||||||||||||||||||||||
Ozurdex ® |
111.0 |
- |
187.7 |
- |
298.7 |
98.4 |
- |
213.4 |
- |
311.8 |
(13.1) |
(4.2) |
% |
|||||||||||||||||||||||||||||||||||
Zenpep® |
- |
237.3 |
0.4 |
- |
237.7 |
- |
212.3 |
- |
- |
212.3 |
25.4 |
12.0 |
% |
|||||||||||||||||||||||||||||||||||
Carafate ® /Sulcrate ® |
- |
217.8 |
2.8 |
- |
220.6 |
- |
235.8 |
2.9 |
- |
238.7 |
(18.1) |
(7.6) |
% |
|||||||||||||||||||||||||||||||||||
Armour Thyroid |
- |
198.8 |
- |
- |
198.8 |
- |
169.1 |
- |
- |
169.1 |
29.7 |
17.6 |
% |
|||||||||||||||||||||||||||||||||||
Canasa®/Salofalk® |
- |
169.2 |
17.6 |
- |
186.8 |
- |
162.7 |
18.3 |
- |
181.0 |
5.8 |
3.2 |
% |
|||||||||||||||||||||||||||||||||||
Viberzi® |
- |
176.5 |
1.3 |
- |
177.8 |
- |
156.6 |
0.5 |
- |
157.1 |
20.7 |
13.2 |
% |
|||||||||||||||||||||||||||||||||||
Asacol®/Delzicol® |
- |
130.8 |
45.7 |
- |
176.5 |
- |
195.5 |
50.2 |
- |
245.7 |
(69.2) |
(28.2) |
% |
|||||||||||||||||||||||||||||||||||
Coolsculpting® Systems & Add On |
126.3 |
- |
43.3 |
- |
169.6 |
106.6 |
- |
32.1 |
- |
138.7 |
30.9 |
22.3 |
% |
|||||||||||||||||||||||||||||||||||
Skin Care |
138.8 |
- |
15.2 |
- |
154.0 |
153.2 |
- |
12.0 |
- |
165.2 |
(11.2) |
(6.8) |
% |
|||||||||||||||||||||||||||||||||||
Saphris® |
- |
139.7 |
- |
- |
139.7 |
- |
155.2 |
- |
- |
155.2 |
(15.5) |
(10.0) |
% |
|||||||||||||||||||||||||||||||||||
Teflaro® |
- |
128.0 |
0.3 |
- |
128.3 |
- |
121.9 |
- |
- |
121.9 |
6.4 |
5.3 |
% |
|||||||||||||||||||||||||||||||||||
Namzaric® |
- |
115.8 |
- |
- |
115.8 |
- |
130.8 |
- |
- |
130.8 |
(15.0) |
(11.5) |
% |
|||||||||||||||||||||||||||||||||||
Avycaz® |
- |
94.6 |
- |
- |
94.6 |
- |
61.2 |
- |
- |
61.2 |
33.4 |
54.6 |
% |
|||||||||||||||||||||||||||||||||||
Rapaflo® |
81.9 |
- |
6.4 |
- |
88.3 |
108.1 |
- |
7.3 |
- |
115.4 |
(27.1) |
(23.5) |
% |
|||||||||||||||||||||||||||||||||||
Savella® |
- |
85.0 |
- |
- |
85.0 |
- |
98.2 |
- |
- |
98.2 |
(13.2) |
(13.4) |
% |
|||||||||||||||||||||||||||||||||||
Dalvance® |
- |
56.1 |
2.3 |
- |
58.4 |
- |
53.9 |
2.4 |
- |
56.3 |
2.1 |
3.7 |
% |
|||||||||||||||||||||||||||||||||||
Aczone® |
55.1 |
- |
0.4 |
- |
55.5 |
166.3 |
- |
0.5 |
- |
166.8 |
(111.3) |
(66.7) |
% |
|||||||||||||||||||||||||||||||||||
Liletta® |
- |
50.9 |
- |
- |
50.9 |
- |
37.6 |
- |
- |
37.6 |
13.3 |
35.4 |
% |
|||||||||||||||||||||||||||||||||||
Namenda® |
- |
71.0 |
- |
- |
71.0 |
- |
452.9 |
- |
- |
452.9 |
(381.9) |
(84.3) |
% |
|||||||||||||||||||||||||||||||||||
Estrace® Cream |
- |
49.0 |
- |
- |
49.0 |
- |
366.6 |
- |
- |
366.6 |
(317.6) |
(86.6) |
% |
|||||||||||||||||||||||||||||||||||
Kybella® /Belkyra® |
31.8 |
- |
6.3 |
- |
38.1 |
49.5 |
- |
6.8 |
- |
56.3 |
(18.2) |
(32.3) |
% |
|||||||||||||||||||||||||||||||||||
Tazorac® |
25.4 |
- |
0.7 |
- |
26.1 |
65.4 |
- |
0.7 |
- |
66.1 |
(40.0) |
(60.5) |
% |
|||||||||||||||||||||||||||||||||||
Minastrin® 24 |
- |
9.5 |
- |
- |
9.5 |
- |
61.4 |
- |
- |
61.4 |
(51.9) |
(84.5) |
% |
|||||||||||||||||||||||||||||||||||
Other Products Revenues |
283.5 |
690.8 |
379.5 |
39.5 |
1,393.3 |
280.1 |
730.9 |
395.1 |
21.4 |
1,427.5 |
(34.2) |
(2.4) |
% |
|||||||||||||||||||||||||||||||||||
Total Net Revenues |
$ |
6,920.3 |
$ |
5,322.9 |
$ |
3,504.7 |
$ |
39.5 |
15,787.4 |
$ |
6,803.6 |
$ |
5,796.2 |
$ |
3,319.5 |
$ |
21.4 |
15,940.7 |
$ |
(153.3) |
(1.0) |
% |
||||||||||||||||||||||||||
The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017. |
||||||||
Table 3 |
||||||||
ALLERGAN PLC |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited; in millions) |
||||||||
December 31, |
December 31, |
|||||||
2018 |
2017 |
|||||||
Assets |
||||||||
Cash and cash equivalents |
$ |
880.4 |
$ |
1,817.2 |
||||
Marketable securities |
1,026.9 |
4,632.1 |
||||||
Accounts receivable, net |
2,868.1 |
2,899.0 |
||||||
Inventories |
846.9 |
904.5 |
||||||
Prepaid expenses and other current assets |
819.1 |
1,123.9 |
||||||
Assets held for sale |
916.2 |
81.6 |
||||||
Property, plant and equipment, net |
1,787.0 |
1,785.4 |
||||||
Investments and other assets |
3,034.3 |
587.0 |
||||||
Product rights and other intangibles |
43,695.4 |
54,648.3 |
||||||
Goodwill |
45,913.3 |
49,862.9 |
||||||
Total assets |
$ |
101,787.6 |
$ |
118,341.9 |
||||
Liabilities & Equity |
||||||||
Current liabilities |
$ |
4,859.6 |
$ |
5,616.3 |
||||
Current and long-term debt and capital leases |
23,797.7 |
30,075.3 |
||||||
Deferred income taxes and other liabilities |
7,999.3 |
8,813.2 |
||||||
Total equity |
65,131.0 |
73,837.1 |
||||||
Total liabilities and equity |
$ |
101,787.6 |
$ |
118,341.9 |
The following table presents Allergan plc's Consolidated Statements of Cash Flows for the three and twelve months ended December 31, 2018 and 2017. |
|||||||||||||||||
Table 4 |
|||||||||||||||||
ALLERGAN PLC |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||||
(Unaudited; in millions) |
|||||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||||
Cash Flows From Operating Activities: |
|||||||||||||||||
Net (loss) / income |
$ |
(4,295.9) |
$ |
3,123.2 |
$ |
(5,086.2) |
$ |
(4,118.9) |
|||||||||
Reconciliation to net cash provided by operating activities: |
|||||||||||||||||
Depreciation |
46.6 |
48.3 |
196.3 |
171.5 |
|||||||||||||
Amortization |
1,569.1 |
1,922.2 |
6,552.3 |
7,197.1 |
|||||||||||||
Provision for inventory reserve |
21.5 |
24.9 |
96.4 |
102.2 |
|||||||||||||
Share-based compensation |
54.6 |
72.5 |
239.8 |
293.3 |
|||||||||||||
Deferred income tax benefit |
107.1 |
(4,577.8) |
(1,255.7) |
(7,783.1) |
|||||||||||||
In-process research and development impairments |
6.6 |
207.0 |
804.6 |
1,452.3 |
|||||||||||||
Goodwill and other impairments and asset sales, net |
5,426.4 |
31.5 |
5,698.7 |
3,927.7 |
|||||||||||||
Net income impact of determining that the loss on investment of Teva securities is other-than-temporary |
- |
- |
- |
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 |
|||||||||||||
Gain on sale of Teva shares, net |
- |
- |
(60.9) |
- |
|||||||||||||
Amortization of inventory step up |
- |
5.5 |
- |
131.7 |
|||||||||||||
Gain on sale of businesses |
- |
- |
(182.6) |
- |
|||||||||||||
Non-cash extinguishment of debt |
12.6 |
(7.5) |
30.0 |
(15.7) |
|||||||||||||
Cash charge related to extinguishment of debt |
(27.4) |
35.1 |
(45.6) |
205.6 |
|||||||||||||
Amortization of deferred financing costs |
5.2 |
8.2 |
22.6 |
27.8 |
|||||||||||||
Contingent consideration adjustments, including accretion |
6.6 |
(81.6) |
(106.5) |
(133.2) |
|||||||||||||
Other, net |
28.5 |
(18.8) |
29.0 |
(37.0) |
|||||||||||||
Changes in assets and liabilities (net of effects of acquisitions): |
|||||||||||||||||
Decrease / (increase) in accounts receivable, net |
(54.0) |
(49.8) |
(37.0) |
(188.3) |
|||||||||||||
Decrease / (increase) in inventories |
(9.5) |
(37.1) |
(145.7) |
(144.8) |
|||||||||||||
Decrease / (increase) in prepaid expenses and other current assets |
9.7 |
(17.9) |
4.3 |
27.9 |
|||||||||||||
Increase / (decrease) in accounts payable and accrued expenses |
197.7 |
452.2 |
151.6 |
95.9 |
|||||||||||||
Increase / (decrease) in income and other taxes payable |
(1,607.1) |
468.0 |
(1,191.6) |
1,114.1 |
|||||||||||||
Increase / (decrease) in other assets and liabilities |
0.3 |
25.1 |
(73.7) |
29.1 |
|||||||||||||
Net cash provided by operating activities |
1,498.6 |
2,083.5 |
5,640.1 |
6,079.0 |
|||||||||||||
Cash Flows From Investing Activities: |
|||||||||||||||||
Additions to property, plant and equipment |
(88.4) |
(115.9) |
(253.5) |
(349.9) |
|||||||||||||
Additions to product rights and other intangibles |
- |
(10.0) |
- |
(614.3) |
|||||||||||||
Additions to investments |
(1,015.3) |
(1,350.0) |
(2,471.7) |
(9,783.8) |
|||||||||||||
Proceeds from sale of investments and other assets |
58.0 |
678.9 |
6,259.3 |
15,153.3 |
|||||||||||||
Payments to settle Teva related matters |
- |
- |
(466.0) |
- |
|||||||||||||
Proceeds from sales of property, plant and equipment |
5.8 |
1.3 |
30.4 |
7.1 |
|||||||||||||
Acquisitions of businesses, net of cash acquired |
- |
- |
- |
(5,290.4) |
|||||||||||||
Net cash (used in) investing activities |
(1,039.9) |
(795.7) |
3,098.5 |
(878.0) |
|||||||||||||
Cash Flows From Financing Activities: |
|||||||||||||||||
Proceeds from borrowings on long-term indebtedness, including credit facility |
1,939.8 |
525.0 |
2,657.0 |
3,550.0 |
|||||||||||||
Proceeds from Forward Sale of Teva securities |
- |
- |
465.5 |
- |
|||||||||||||
Debt issuance and other financing costs |
(10.4) |
(3.1) |
(10.4) |
(20.6) |
|||||||||||||
Payments on debt, including capital lease obligations |
(1,688.6) |
(834.4) |
(8,804.5) |
(6,413.6) |
|||||||||||||
Cash charge related to extinguishment of debt |
- |
(35.1) |
- |
(205.6) |
|||||||||||||
Proceeds from stock plans |
4.2 |
16.2 |
102.4 |
183.4 |
|||||||||||||
Other financing, including contingent consideration |
(9.2) |
3.6 |
(30.9) |
(511.6) |
|||||||||||||
Payments to settle Teva related matters |
- |
- |
(234.0) |
- |
|||||||||||||
Repurchase of ordinary shares |
(751.9) |
(456.6) |
(2,775.4) |
(493.0) |
|||||||||||||
Dividends |
(241.7) |
(301.2) |
(1,049.8) |
(1,218.2) |
|||||||||||||
Net cash (used in) financing activities |
(757.8) |
(1,085.6) |
(9,680.1) |
(5,129.2) |
|||||||||||||
Effect of currency exchange rate changes on cash and cash equivalents |
(8.4) |
2.3 |
4.7 |
21.4 |
|||||||||||||
Net increase / (decrease) in cash and cash equivalents |
(307.5) |
204.5 |
(936.8) |
93.2 |
|||||||||||||
Cash and cash equivalents at beginning of period |
1,187.9 |
1,612.7 |
1,817.2 |
1,724.0 |
|||||||||||||
Cash and cash equivalents at end of period |
$ |
880.4 |
$ |
1,817.2 |
$ |
880.4 |
$ |
1,817.2 |
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 and impairments 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, 2018 and December 31, 2017 was $32.3 billion and $25.8 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, 2018 and 2017: |
||||||||||||||||||||||||||||||||||||||||
Table 5 |
||||||||||||||||||||||||||||||||||||||||
ALLERGAN PLC |
||||||||||||||||||||||||||||||||||||||||
GAAP TO NON-GAAP ADJUSTMENTS |
||||||||||||||||||||||||||||||||||||||||
(Unaudited; in millions) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 |
||||||||||||||||||||||||||||||||||||||||
Net Revenue |
COGS |
Research & Development |
Selling & Marketing |
General & Administrative |
Amortization |
Asset sales & Impairments, net |
Interest expense, net |
Other income (expense) |
Income taxes |
|||||||||||||||||||||||||||||||
GAAP |
$ |
4,079.7 |
$ |
590.0 |
$ |
678.1 |
$ |
841.6 |
$ |
352.0 |
$ |
1,569.1 |
$ |
5,433.0 |
$ |
(198.6) |
$ |
(9.9) |
$ |
(1,296.7) |
||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(0.3) |
(0.6) |
(1.4) |
(0.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
- |
(0.6) |
- |
(2.5) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(5.2) |
(0.1) |
(20.3) |
0.2 |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Costs associated with disposed businesses |
- |
0.5 |
- |
0.2 |
(1.3) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Integration charges of acquired businesses |
- |
(0.1) |
0.2 |
- |
(10.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Milestones and upfront expenses for asset acquisitions |
||||||||||||||||||||||||||||||||||||||||
Bonti, Inc. |
- |
- |
(196.6) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Editas Medicine, Inc. |
- |
- |
(25.0) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other |
- |
- |
(16.5) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Accretion and fair-value adjustments to contingent consideration |
- |
(3.7) |
(2.9) |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-cash amortization of debt premium recognized in purchase accounting |
- |
- |
- |
- |
- |
- |
- |
(5.5) |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Kybella®intangible asset |
- |
- |
- |
- |
- |
- |
(1,643.8) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of TrueTear®intangible asset |
- |
- |
- |
- |
- |
- |
(187.6) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Goodwill |
- |
- |
- |
- |
- |
- |
(2,841.1) |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of Anti-Infectives held for sale, including allocated goodwill of $622 million |
- |
- |
- |
- |
- |
- |
(771.7) |
- |
- |
- |
||||||||||||||||||||||||||||||
Asset sales and impairments, other |
- |
- |
- |
- |
- |
- |
25.5 |
- |
- |
- |
||||||||||||||||||||||||||||||
Impairment of assets held for sale |
- |
- |
- |
- |
- |
- |
(14.2) |
- |
- |
- |
||||||||||||||||||||||||||||||
Gain on bond repurchases |
- |
- |
- |
- |
- |
- |
- |
- |
(13.9) |
- |
||||||||||||||||||||||||||||||
Litigation settlement related charges |
- |
- |
- |
- |
(16.4) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Other adjustments |
- |
0.1 |
0.1 |
- |
(0.9) |
(1,569.1) |
(0.1) |
(0.1) |
(2.0) |
- |
||||||||||||||||||||||||||||||
Income taxes on pre-tax adjustments |
- |
- |
- |
- |
- |
- |
- |
- |
- |
658.8 |
||||||||||||||||||||||||||||||
Discrete income tax events |
- |
- |
- |
- |
- |
- |
- |
- |
- |
879.8 |
||||||||||||||||||||||||||||||
Non-GAAP Adjusted |
$ |
4,079.7 |
$ |
581.3 |
$ |
436.1 |
$ |
820.1 |
$ |
320.3 |
$ |
- |
$ |
- |
$ |
(204.2) |
$ |
(25.8) |
$ |
241.9 |
||||||||||||||||||||
Three Months Ended December 31, 2017 |
||||||||||||||||||||||||||||||||||||||||
Net Revenue |
COGS |
Research & Development |
Selling & Marketing |
General & Administrative |
Amortization |
Asset sales & |
Interest expense, net |
Other income (expense) |
Income taxes |
|||||||||||||||||||||||||||||||
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 on acquired inventory |
- |
(5.5) |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Purchase accounting impact on stock-based compensation for acquired awards |
- |
(1.3) |
(3.8) |
(6.7) |
(3.2) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Severance due to integration of acquired entities |
- |
- |
- |
(0.8) |
(0.6) |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring related to the December 31, 2017 restructuring program |
- |
(7.7) |
(18.2) |
(56.5) |
(23.5) |
- |
(17.7) |
- |
- |
- |
||||||||||||||||||||||||||||||
Non-acquisition related severance and restructuring |
- |
(8.7) |
0.0 |
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 consideration |
- |
55.9 |
25.7 |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
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) |
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