Exhibit 99.1
 

Allergan Reports Solid Top-Line Execution in Third Quarter 2017 with 11% Increase in GAAP Net Revenues to $4.03 Billion



-- Q3 2017 GAAP Continuing Operations Loss Per Share of $12.05; Q3 Non-GAAP Performance Net Income Per Share of $4.15 --

-- Q3 2017 GAAP Operating Loss from Continuing Operations of $4.02 Billion; Q3 Non-GAAP Adjusted Operating Income from Continuing Operations of $1.97 Billion --

-- Q3 2017 GAAP Revenue Growth Versus Prior Year Quarter Powered by BOTOX®, JUVÉDERM® Collection, LINZESS®, ALLODERM®, CoolSculpting® and New Products --

-- Company Recorded Impairment Charges of $4.1 Billion, Primarily Related to RESTASIS® and ACZONE® --

-- Company Recorded an Other-Than-Temporary Impairment of Teva Securities of $1.3 Billion --

-- Allergan Continues to Advance Six "Star" R&D Programs --

-- Company Narrows Full-Year 2017 Non-GAAP Net Revenue and Full-Year 2017 Non-GAAP Performance Net Income Per Share Guidance --

DUBLIN, Nov. 1, 2017 /PRNewswire/ -- Allergan plc (NYSE: AGN) today reported its third quarter 2017 continuing operations performance.

Third Quarter 2017 Continuing Operations

(unaudited; $ in millions, except
per share amounts)


Q3 '17



Q3 '16



Q2 '17



Q3 '17 v Q3
'16



Q3 '17 v Q2
'17



Nine
Months
Ended
September
30, 2017


Nine
Months
Ended
September
30, 2016


2017
v
2016


Total net revenues**


$

4,034.3



$

3,622.2



$

4,007.4




11.4

%



0.7

%


$

11,614.6


$

10,706.3



8.5

%
































Operating (Loss)


$

(4,022.3)



$

(266.4)



$

(902.4)




1409.9

%



345.7

%


$

(5,830.7)


$

(925.5)



530.0

%

Diluted EPS - Continuing Operations


$

(12.05)



$

(1.15)



$

(2.35)




947.8

%



412.8

%


$

(22.23)


$

(2.81)



691.1

%

SG&A Expense


$

1,169.7



$

1,157.2



$

1,395.0




1.1

%



(16.2)

%


$

3,749.9


$

3,463.5



8.3

%

R&D Expense


$

442.6



$

622.8



$

489.4




(28.9)

%



(9.6)

%


$

1,691.9


$

1,662.4



1.8

%

Continuing Operations Tax Rate



29.3

%



29.5

%



44.8

%



(0.2)

%



(15.5)

%



27.6

%


48.0

%


(20.4)

%
































Non-GAAP Adjusted Operating Income


$

1,968.2



$

1,784.4



$

1,887.2




10.3

%



4.3

%


$

5,473.2


$

5,376.6



1.8

%

Non-GAAP Performance Net Income
Per Share


$

4.15



$

3.32



$

4.02




25.0

%



3.2

%


$

11.51


$

9.66



19.2

%

Non-GAAP Adjusted EBITDA


$

2,051.7



$

1,902.2



$

2,027.2




7.9

%



1.2

%


$

5,813.1


$

5,653.0



2.8

%

Non-GAAP SG&A Expense


$

1,099.6



$

1,006.9



$

1,216.5




9.2

%



(9.6)

%


$

3,422.0


$

3,014.7



13.5

%

Non-GAAP R&D Expense


$

405.3



$

386.4



$

393.9




4.9

%



2.9

%


$

1,193.1


$

1,007.9



18.4

%

Non-GAAP Continuing Operations
Tax Rate



13.1

%



8.2

%



13.1

%



4.9

%



0.0

%



13.1

%


8.3

%


4.8

%
































** Excludes the reclassification of revenues of ($23.7) million and ($80.0) million in the three and nine months ended September 30, 2016,
respectively, related to the portion of Allergan product revenues sold by our former Anda Distribution Business into discontinued operations.


Total net revenues were $4.03 billion, an 11.4 percent increase from the prior year quarter, driven by BOTOX®, JUVÉDERM® Collection, LINZESS®, ALLODERM®, CoolSculpting® and new products, including VRAYLAR™, NAMZARIC® and VIBERZI®. The increase was partially offset by lower revenues from MINASTRIN® and ASACOL® HD due to the loss of patent exclusivity, and the continuing decline in NAMENDA XR®.

"Allergan's results and outlook demonstrate the foundational strength of our Company. Our 11 percent revenue growth in the third quarter was powered by significant year-over-year gains from many of our top products, including BOTOX®, JUVÉDERM® Collection, LINZESS®, ALLODERM® and CoolSculpting®. We tightly managed our SG&A expenses, and our R&D team is making important progress across key programs, especially in advancing our six 'stars', including the NDA acceptance of Esmya for uterine fibroids," said Brent Saunders, Chairman and CEO of Allergan. "I continue to be very proud of our team and the work they are doing to advance patient care. Their focus and dedication, despite headwinds, is a hallmark of the bold team we have built at Allergan."

Regarding the RESTASIS® Federal District Court decision, Saunders added, "We have strong arguments for an appeal and we filed a notice of appeal with the Court. If a generic product enters the market, Allergan is ready to mitigate that impact by growing our base business, reducing costs and deploying our balance sheet. We will also deliver on our capital commitments, including increasing our dividend and paying down debt."

Third-Quarter 2017 Performance

GAAP operating loss from continuing operations in the third quarter 2017 was $4.02 billion, which includes the impact of amortization, asset sales and impairments, net, in-process research and development (R&D) impairments and foreign exchange transactional losses. Non-GAAP adjusted operating income from continuing operations in the third quarter of 2017 was $1.97 billion, an increase of 10.3 percent versus prior year quarter.

Operating Expenses

Total GAAP Selling, General and Administrative (SG&A) Expense was $1.17 billion for the third quarter 2017, compared to $1.16 billion in the prior year quarter. Total non-GAAP SG&A expense increased to $1.10 billion for the third quarter 2017, compared to $1.01 billion in the prior year period, primarily due to a period-over-period foreign exchange transactional loss of $67 million, as well as costs associated with the additions of the ALLODERM® and CoolSculpting® businesses. GAAP R&D investment for the third quarter of 2017 was $442.6 million, compared to $622.8 million in the third quarter of 2016. Non-GAAP R&D investment for the third quarter 2017 was $405.3 million, an increase of 4.9 percent over the prior year quarter, due to increased costs associated with clinical programs.

Asset Sales & Impairments, Net and In-Process R&D Impairments

The Company evaluated all of its dry eye related assets for impairment as a result of the U.S. District Court for the Eastern District of Texas issuing an adverse trial decision finding that the four asserted patents covering RESTASIS® (Cyclosporine Ophthalmic Emulsion) 0.05% are invalid. As a result of our review of all potential scenarios relating to these assets, the Company recognized an impairment of $3.2 billion related to RESTASIS®, as well as an impairment of $164.0 million related to other Dry Eye IPR&D assets obtained in the Allergan acquisition in the three months ended September 30, 2017. The Company also impaired the intangible asset related to ACZONE® by $646.0 million as a result of branded acne market erosion. Additionally, the Company impaired an IPR&D asset acquired as part of the Warner Chilcott acquisition by $21.0 million in the three months ended September 30, 2017 ($278.0 million in the nine months ended September 30, 2017), due to a delay in anticipated launch of a women's healthcare project and an anticipated decrease in product demand. 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 Adjusted Operating Income.

Amortization, Other Income (Expense) Net, Tax and Capitalization

Amortization expense from continuing operations for the third quarter 2017 was $1.78 billion, compared to $1.61 billion in the third quarter of 2016. Included within other income (expense), net in the three months ended September 30, 2017 is the other-than-temporary impairment of Teva securities of $1.3 billion. The Company's GAAP continuing operations tax rate was 29.3 percent in the third quarter 2017. The Company's non-GAAP adjusted continuing operations tax rate was 13.1 percent in the third quarter 2017. As of September 30, 2017, Allergan had cash and marketable securities of $5.4 billion and outstanding indebtedness of $30.3 billion.

Discontinued Operations and Continuing Operations

As a result of the divestiture of the Company's generics business and the divestiture of the Company's Anda Distribution business in 2016, the financial results of those businesses have been reclassified to discontinued operations for all periods presented in our consolidated financial statements up through the date of the divestitures. Included in segment revenues in the three months ended September 30, 2016 are product sales that were sold by the Anda Distribution business once the Anda Distribution business had sold the product to a third-party customer. These sales are included in segment results and are excluded from total continuing operations revenues through a reduction to Corporate revenues. Cost of sales for these products in discontinued operations is equal to our average third-party cost of sales for third-party branded products distributed by Anda Distribution.

Third Quarter 2017 Business Segment Results

U.S. Specialized Therapeutics

Segment Information


(Unaudited; $ in millions)


Three Months Ended September 30,




2017



2016 (1)


Eye Care


$

635.3



$

608.5


Total Medical Aesthetics



602.3




388.9


Facial Aesthetics



314.9




293.7


Plastic Surgery



58.0




52.2


Regenerative Medicine



113.7




-


Body Contouring



83.4




-


Skin Care



32.3




43.0


Medical Dermatology



86.9




116.1


Neuroscience & Urology



380.4




330.7


Other Revenues



19.9




9.0


Net revenues


$

1,724.8



$

1,453.2


Operating expenses:









Cost of sales(2)



131.4




69.2


Selling and marketing



353.5




292.4


General and administrative



54.8




41.2


Segment contribution


$

1,185.1



$

1,050.4


Segment margin



68.7

%



72.3

%

Segment gross margin(3)



92.4

%



95.2

%










(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.


(2) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost of sales not attributable to segment results.


(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.


U.S. Specialized Therapeutics net revenues in the third quarter of 2017 were $1.7 billion, an increase of 18.7 percent versus prior year quarter, driven primarily by the addition of ALLODERM® and CoolSculpting®, as well as growth in BOTOX®, JUVÉDERM® Collection and Eye Care, offset by decreased revenues in Dermatology.

Eye Care

  • Allergan's Eye Care franchise delivered solid results versus prior year.
    • RESTASIS® net revenues of $366.8 million in the third quarter of 2017 increased 2.9 percent versus the prior year quarter.
    • The Glaucoma franchise remained stable with ALPHAGAN®/COMBIGAN® net revenues in the third quarter of 2017 experiencing a modest decline to $92.7 million, while LUMIGAN®/GANFORT® net revenues increased 6.4 percent versus the prior year quarter to $83.3 million.
    • OZURDEX® net revenues in the third quarter of 2017 increased 17.7 percent from the prior year quarter to $24.6 million, driven by continued strong demand.

Medical Aesthetics

  • The Facial Aesthetics franchise continues to deliver strong growth with revenues increasing 7.2 percent versus prior year quarter.
    • BOTOX® Cosmetic net revenues in the third quarter of 2017 were $189.7 million, up 8.7 percent versus prior year quarter, reflecting continued strong volume growth.
    • JUVÉDERM® Collection (defined as JUVÉDERM®, VOLUMA® and other fillers) net revenues in the third quarter of 2017 were $115.6 million, up 10.1 percent versus prior year quarter, driven by continued strong demand and market share gains.
    • KYBELLA® net revenues in the third quarter of 2017 were $9.6 million, a decrease of 32.4 percent from the prior year quarter, primarily due to the impact of lower promotional effort in the third quarter of 2017 versus prior year.
  • Regenerative Medicine
    • ALLODERM® net revenues in the third quarter of 2017 were $84.6 million.
    • STRATTICE™ net revenues, a component of "Other Regenerative Medicine," were $26.6 million in the third quarter of 2017.
  • Body Contouring
    • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the third quarter of 2017 were $83.4 million.
  • Plastic Surgery
    • Breast implant net revenues in the third quarter of 2017 were $58.0 million, an increase of 13.5 percent versus prior year quarter, driven by higher demand following the launch of INSPIRA™ breast implants.
  • Skin Care
    • SkinMedica® net revenues in the third quarter of 2017 were $18.7 million, a decrease of 27.5 percent compared with the third quarter of 2016, due to timing of promotional programs.

Medical Dermatology

  • ACZONE® net revenues in the third quarter of 2017 were $46.7 million, a decrease of 32.3 percent, primarily impacted by generic pressure on the branded acne category and higher discounts for formulary coverage.
  • TAZORAC® net revenues in the third quarter of 2017 were $15.1 million, a decrease of 45.1 percent, primarily due to continued generic competition.

Neurosciences & Urology

  • BOTOX® Therapeutic net revenues in the third quarter of 2017 were $352.1 million, an increase of 15.3 percent versus the prior year quarter, primarily driven by continued strong demand in the chronic migraine and adult spasticity indications.
  • RAPAFLO® net revenues in the third quarter of 2017 were $28.3 million, an increase of 12.3 percent versus prior year quarter.

U.S. Specialized Therapeutics gross margin for the third quarter of 2017 was 92.4 percent, impacted by the contribution of the ALLODERM® and CoolSculpting® businesses. SG&A expenses in the segment for the third quarter 2017 were $408.3 million. Selling and marketing expenses in the segment for the third quarter 2017 were $353.5 million, an increase of 21 percent versus prior year quarter mainly attributed to the contribution of the ALLODERM® and CoolSculpting® businesses. General and administrative expenses at the segment level for the third quarter 2017 were $54.8 million, an increase of 33 percent versus prior year quarter, attributed in part to the addition of the ALLODERM® and CoolSculpting® businesses. Segment contribution for the third quarter 2017 remained strong at $1.19 billion, an increase of 13 percent versus the prior year quarter, driven by increased revenues following recent acquisitions.

U.S. General Medicine

Segment Information


(Unaudited; $ in millions)


Three Months Ended September 30,




2017



2016 (1)


Central Nervous System


$

355.2



$

325.5


Gastrointestinal



443.5




431.4


Women's Health



265.7




305.3


Anti-Infectives



67.2




52.5


Diversified Brands



318.7




319.3


Other Revenues



47.1




54.1


Net revenues


$

1,497.4



$

1,488.1


Operating expenses:









Cost of sales(2)



225.5




215.1


Selling and marketing



247.7




292.8


General and administrative



47.7




42.3


Segment contribution


$

976.5



$

937.9


Segment margin



65.2

%



63.0

%

Segment gross margin(3)



84.9

%



85.5

%










(1) Includes revenues earned that were distributed through our former Anda Distribution business to third party customers.


(2) Excludes amortization and impairment of acquired intangibles including product rights as well as indirect cost of sales not attributable to segment results.


(3) Defined as net revenues less segment related cost of sales as a percentage of net revenues.


U.S. General Medicine net revenues in the third quarter 2017 were $1.5 billion, remaining stable versus the prior year quarter, driven by strong growth from LINZESS®, VRAYLAR™, NAMZARIC® and Lo LOESTRIN®, offset by lower revenues from MINASTRIN®, ASACOL® and NAMENDA XR ® due to generic competition and product conversion.

Central Nervous System

  • NAMENDA XR® net revenues in the third quarter of 2017 were $114.3 million, a decrease of 22.2 percent versus the prior year quarter, driven primarily by lower demand as a result of a reduction in promotional support and continued conversion to NAMZARIC®.
  • NAMZARIC® net revenues in the third quarter of 2017 increased to $37.0 million from $14.9 million in the prior year quarter driven by increased demand.
  • VRAYLAR™ net revenues in the third quarter of 2017 were strong at $80.2 million, driven by demand growth.
  • VIIBRYD®/FETZIMA® net revenues in the third quarter of 2017 were $86.5 million, a decrease of 1.3 percent versus the prior year quarter.
  • SAPHRIS® net revenues in the third quarter of 2017 were $37.2 million, a decrease of 8.8 percent versus the prior year quarter, primarily impacted by lower demand.

Gastrointestinal

  • LINZESS® net revenues in the third quarter of 2017 were $190.9 million, an increase of 16.1 percent versus prior year quarter, driven by strong demand growth and favorable year-over-year trade buying patterns.
  • VIBERZI® net revenues in the third quarter of 2017 were $40.9 million, driven by continued demand growth.
  • ASACOL®/DELZICOL® net revenues in the third quarter of 2017 were $49.5 million, a decrease of 31.4 percent versus the prior year quarter, impacted by generic entry for ASACOL® HD and a decline in demand for DELZICOL®.
  • ZENPEP® net revenues in the third quarter of 2017 were $56.8, an increase of 8.2 percent versus the prior year quarter.
  • CARAFATE®/SULCRATE® net revenues in the third quarter of 2017 were $58.7 million, an increase of 4.1 percent versus the prior year quarter.

Women's Health

  • Lo LOESTRIN® net revenues in the third quarter of 2017 were $120.0 million, up 13.5 percent versus prior year quarter, driven by strong prescription growth and higher average selling prices. Lo LOESTRIN® remains the number one prescribed branded oral contraceptive.
  • ESTRACE® Cream net revenues in the third quarter were $101.6 million, an increase of 3.0 percent versus prior year quarter.
  • MINASTRIN® 24 net revenues in the third quarter of 2017 were $3.6 million, a decrease of 95.8 percent versus prior year quarter, impacted by loss of patent exclusivity for MINASTRIN® 24 on March 15, 2017.
  • TAYTULLA™ net revenues, a component of "Other Women's Health," were $21.0 million in the third quarter of 2017 following launch of this new oral contraceptive soft gel product in November 2016.

Anti-Infectives

  • TEFLARO® net revenues in the third quarter of 2017 were $29.1 million, a decrease of 12.6 percent versus prior year quarter, primarily impacted by generic competition in the category.
  • DALVANCE® net revenues in the third quarter of 2017 were $16.1 million compared to $10.3 million in the prior year quarter, driven by increasing demand.
  • AVYCAZ® net revenues in the third quarter of 2017 were $16.9 million versus $4.8 million in the third quarter of 2016, a period of supply disruption.

Diversified Brands and Other Products

  • Diversified Brands net revenues in the third quarter of 2017 were stable at $318.7 million, compared to $319.3 million in the prior year quarter.
  • Within Diversified Brands, BYSTOLIC®/BYVALSON® net revenues in the third quarter of 2017 were stable at $164.2 million. BYSTOLIC® remains the flagship product of Allergan's primary care sales force.

U.S. General Medicine gross margin for the third quarter of 2017 decreased to 84.9 percent as unfavorable product mix offset the impact of the Company reacquiring rights to select licensed products in the segment, which had the impact of lowering royalty expense on these products. SG&A expenses in the segment were $295.4 million in the third quarter of 2017. Selling and marketing expenses in the segment were $247.7 million, a decrease of 15 percent versus prior year quarter, due to a decrease in sales force and other promotional expenses. General and administrative expenses increased to $47.7 million at the segment level. Segment contribution for the third quarter 2017 was $976.5 million.

International

Segment Information


(Unaudited; $ in millions)


Three Months Ended September 30,




2017



2016


Eye Care


$

317.9



$

294.2


Total Medical Aesthetics



331.1




251.0


Facial Aesthetics



259.6




212.6


Plastic Surgery



38.5




35.8


Regenerative Medicine



5.1




-


Body Contouring



24.0




-


Skin Care



3.9




2.6


Botox Therapeutics and Other



141.8




134.6


Other Revenues



17.0




18.0


Net revenues


$

807.8



$

697.8


Operating expenses:









Cost of sales(1)



116.3




95.1


Selling and marketing



224.8




188.2


General and administrative



28.3




28.0


Segment contribution


$

438.4



$

386.5


Segment margin



54.3

%



55.4

%

Segment gross margin (2)



85.6

%



86.4

%










(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.


International net revenues were $807.8 million, an increase of 13.7 percent versus prior year quarter excluding foreign exchange impact, driven by growth in Facial Aesthetics, Eye Care and the addition of CoolSculpting®.

Medical Aesthetics

  • Facial Aesthetics
    • BOTOX® Cosmetic net revenues in the third quarter of 2017 were $131.5 million, an increase of 15.3 percent versus prior year quarter excluding foreign exchange impact, driven by continued strong growth in Latin America/Canada and Asia Pacific/Middle East/Africa.
    • JUVÉDERM® Collection net revenues in the third quarter of 2017 were $126.5 million, an increase of 27.8 percent versus prior year quarter excluding foreign exchange impact, reflecting continued strong performance across all regions.
  • Plastic Surgery
    • Breast implant net revenues in the third quarter of 2017 were $38.1 million, an increase of 7.0 percent versus prior year quarter, excluding foreign exchange impact.
  • Body Contouring
    • CoolSculpting® net revenues (including both CoolSculpting® Systems/Applicators and Consumables) in the third quarter of 2017 were $24.0 million.

Eye Care

  • LUMIGAN®/GANFORT® and ALPHAGAN®/COMBIGAN® net revenues in the third quarter of 2017 were $91.5 million and $43.4 million, respectively, reflecting continued stable performance across Allergan's glaucoma product franchise.
  • OZURDEX® net revenues in the third quarter of 2017 were $50.2 million, up 12.0 percent versus prior year quarter excluding foreign exchange impact, reflecting strong demand across all regions.
  • OPTIVE® net revenues in the third quarter of 2017 were $28.4 million, up 7.0 percent versus prior year quarter excluding foreign exchange impact, reflecting strong demand in Latin America/Canada and Asia Pacific/Middle East/Africa.

Botox Therapeutic & Other Products

  • BOTOX® Therapeutic net revenues in the third quarter of 2017 were $84.4 million, up 4.9 percent versus prior year quarter excluding foreign exchange impact.
  • ASACOL®/DELZICOL® revenues in the third quarter of 2017 were $11.9 million, a decrease of 17.6 percent versus prior year quarter excluding foreign exchange impact.

International gross margin for the third quarter of 2017 was 85.6 percent. SG&A expenses in the segment were $253.1 million in the third quarter of 2017. Selling and marketing expenses in the segment were $224.8 million, an increase of 17 percent versus prior year excluding foreign exchange impact, in line with higher sales and the addition of CoolSculpting®. Segment contribution was $438.4 million.

Corporate Function

Included within our corporate function are shared costs, including above site and unallocated costs associated with running our global manufacturing facilities, corporate general and administrative expenses and corporate initiatives.

Pipeline Update

Allergan R&D continues to deliver on its pipeline. Key development highlights included:

U.S. and International Branded Product Approvals and Launches

  • Allergan received approval from the U.S. Food and Drug Administration (FDA) for BOTOX® Cosmetic for the temporary improvement in the appearance of moderate to severe forehead lines associated with frontalis muscle activity in adults. This marks the third approved indication for BOTOX® Cosmetic, in addition to crow's feet and glabellar lines.

Regulatory Milestones & Clinical Updates

  • Allergan announced the FDA has accepted the New Drug Application (NDA) for ulipristal acetate, an investigational drug for the treatment of abnormal uterine bleeding in women with uterine fibroids.
  • Allergan announced the FDA has accepted a supplemental New Drug Application (sNDA) for AVYCAZ® (ceftazidime and avibactam) for priority review. The sNDA filing seeks to expand the current indications for AVYCAZ® to include hospital-acquired bacterial pneumonia/ventilator-associated bacterial pneumonia (HABP/VABP) in adult patients based on positive results from a Phase 3 clinical trial evaluating AVYCAZ® for the treatment of patients with HABP/VABP. The FDA granted priority review status to the application based on the previous Qualified Infectious Disease Product (QIDP) designation for AVYCAZ®, and is expected to take action on the filing in the first quarter of 2018.
  • Allergan announced top-line results from new data for the CENTAUR Phase 2b study which supports the anti-fibrotic efficacy and safety of Cenicriviroc (CVC) for the treatment of liver fibrosis in adults with NASH. The Company plans to conduct additional subanalyses of the CENTAUR study and will discuss the data with regulatory authorities to determine whether study modifications may be required. Allergan is currently enrolling patients in a 2,000-patient phase 3 clinical trial of CVC. The primary composite endpoint in the AURORA trial is reduction in fibrosis by at least one stage with no worsening of NASH at one year.
  • Allergan received a Refusal to File (RTF) letter from the FDA regarding its Supplemental New Drug Application (sNDA) for VRAYLAR™ (cariprazine) for treatment of negative symptoms associated with schizophrenia in adult patients. Under its preliminary review, FDA determined that the sNDA for treatment of negative symptoms was not sufficiently complete to permit a substantive review. Allergan has scheduled a meeting with the FDA in December to address the issues in the RTF letter.
  • Allergan initiated patient screening in a Phase 3 study of Relamorelin, the Company's ghrelin agonist being studied as a treatment for diabetic gastroparesis. Allergan expects to begin dosing patients in the Phase 3 study in the coming weeks.

Allergan Narrows Full Year 2017 Non-GAAP Continuing Operations Guidance


Previous Guidance

Current Guidance

Full Year 2017

GAAP

NON-GAAP

GAAP

NON-GAAP






Total Net Revenues

$15,850 – $16,050
million

$15,850 – $16,050
million

$15,875 – $16,025
million

$15,875 – $16,025
million

Gross Margin (as a % of revenues)

~86.0% - 86.5%

~86.5% - 87.0%

~86.0% - 86.5%

~86.5-87.0%

SG&A Expense

~$4.950 - $5.050
billion

~$4.500 - $4.600
billion

~$4.950 - $5.050
billion

~$4.500 - $4.600
billion

R&D Expense

~$2.15 billion

~$1.60 billion

~$2.15 billion

~$1.60 billion

Net Interest Expense/Other Income (Expense)

~$3.05 billion

~$1.00 billion

~$4.35 billion

~$1.00 billion

Tax Rate1

~25.5%

~13.0%

~36%

~13.0%

Net Income / (Loss) Per Share2

$(10.80) - $(11.20)

$16.05 - $16.45

$(20.05) - $(20.35)

$16.15 - $16.45

Average 2017 Share Count3

~334 million shares

~356 million shares

~334 million shares

~356 million shares






1 Includes the net tax benefit of approximately $795.0 million resulting from changes to the internal structure of the Company
that occurred in October 2017. This is due to certain temporary differences expected to reverse at tax rates different than what was
originally recorded.

2 GAAP represents EPS for ordinary shareholders. GAAP (loss) per share includes the impact of amortization of approximately
$7.2 billion, IPR&D impairments and asset sales and impairments, net of $5.15 billion and dividends on preferred shares of
approximately $278 million. Non-GAAP represents performance net income per share.

3 GAAP EPS shares do not include dilution of shares as earnings are a net loss.  As such, the dilution impact of preferred share
conversion and outstanding equity awards is not included in the forecasted shares.

Third Quarter 2017 Conference Call and Webcast Details

Allergan will host a conference call and webcast today, Wednesday, November 1, at 8:30 a.m. Eastern Time to discuss its third quarter 2017 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 65879759. A taped 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 December 1, 2017. The replay may be accessed by dialing (855) 859-2056 and entering the conference ID 65879759. From international locations, the replay may be accessed by dialing (404) 537-3406 and entering the same conference ID.

To access the live webcast, please visit Allergan's Investor Relations Web site at https://www.allergan.com/investors. A replay of the webcast will also be available.

About Allergan plc

Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a bold, global pharmaceutical company and a leader in a new industry model – Growth Pharma. 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 for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories.

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 with 60+ mid-to-late stage pipeline programs currently in development.

Allergan's success is powered by our more than 18,000 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; uncertainty associated with financial projections, 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, 2016 and Allergan's Quarterly Report on Form 10-Q for the period ended June 30, 2017. 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 nine months ended September 30,
2017 and 2016:


Table 1


ALLERGAN PLC


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited; in millions, except per share amounts)





















Three Months Ended



Nine Months Ended




September 30,



September 30,




2017



2016



2017



2016


Net revenues


$

4,034.3



$

3,622.2



$

11,614.6



$

10,706.3



















Operating expenses:

















Cost of sales (excludes amortization and impairment of  
   acquired intangibles including product rights)



586.5




462.2




1,587.1




1,381.1


Research and development



442.6




622.8




1,691.9




1,662.4


Selling, general and administrative



1,169.7




1,157.2




3,749.9




3,463.5


Amortization



1,781.0




1,609.1




5,274.9




4,831.9


In-process research and development impairments



202.0




42.0




1,245.3




316.9


Asset sales and impairments, net



3,874.8




(4.7)




3,896.2




(24.0)


Total operating expenses



8,056.6




3,888.6




17,445.3




11,631.8


Operating (loss)



(4,022.3)




(266.4)




(5,830.7)




(925.5)



















Non-operating income (expense):

















Interest income



11.1




18.1




53.0




23.5


Interest (expense)



(265.2)




(324.3)




(832.3)




(1,002.9)


Other income (expense), net



(1,310.3)




33.6




(3,366.6)




184.2


Total other income (expense), net



(1,564.4)




(272.6)




(4,145.9)




(795.2)


(Loss) before income taxes and noncontrolling interest



(5,586.7)




(539.0)




(9,976.6)




(1,720.7)


(Benefit) for income taxes



(1,638.8)




(158.9)




(2,752.1)




(825.8)


Net (loss) from continuing operations, net of tax



(3,947.9)




(380.1)




(7,224.5)




(894.9)


(Loss) / income from discontinued operations, net of tax



(6.1)




15,601.9




(17.6)




15,873.2


Net (loss) / income



(3,954.0)




15,221.8




(7,242.1)




14,978.3


(Income) attributable to noncontrolling interest



(1.7)




(1.8)




(4.7)




(4.3)


Net (loss) / income attributable to shareholders



(3,955.7)




15,220.0




(7,246.8)




14,974.0


Dividends on preferred shares



69.6




69.6




208.8




208.8


Net (loss) / income attributable to ordinary shareholders


$

(4,025.3)



$

15,150.4



$

(7,455.6)



$

14,765.2



















(Loss) / income per share attributable to ordinary shareholders -

   basic:

















Continuing operations


$

(12.05)



$

(1.15)



$

(22.23)



$

(2.81)


Discontinued operations



(0.02)




39.73




(0.05)




40.25


Net (loss) /income per share - basic


$

(12.07)



$

38.58



$

(22.28)



$

37.44


(Loss) / income per share attributable to ordinary shareholders -

   diluted:

















Continuing operations


$

(12.05)



$

(1.15)



$

(22.23)



$

(2.81)


Discontinued operations



(0.02)




39.73




(0.05)




40.25


Net (loss) /income per share - diluted


$

(12.07)



$

38.58



$

(22.28)



$

37.44



















Dividends per ordinary share


$

0.70



$

-



$

2.10



$

-



















Weighted average shares outstanding:

















Basic



333.5




392.7




334.6




394.4


Diluted



333.5




392.7




334.6




394.4


The following table details Allergan plc's product revenue for significant promoted products globally, within the U.S., and international for the three and nine months ended September 30, 2017 and 2016.


Table 2


ALLERGAN PLC


NET REVENUES TOP GLOBAL PRODUCTS


(Unaudited; in millions)





















































Three Months Ended September 30, 2017



Three Months Ended September 30, 2016



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®


$

558.6



$

-



$

215.9



$

-



$

774.5



$

496.3



$

-



$

193.4



$

-



$

689.7



$

84.8




12.3

%

Restasis®



366.8




-




15.5




-




382.3




356.4




-




15.4




-




371.8




10.5




2.8

%

Juvederm Collection**



115.6




-




126.5




-




242.1




105.0




-




96.8




-




201.8




40.3




20.0

%

Linzess®/Constella®



-




190.9




5.7




-




196.6




-




164.4




4.3




-




168.7




27.9




16.5

%

Lumigan®/Ganfort®



83.3




-




91.5




-




174.8




78.3




-




86.6




-




164.9




9.9




6.0

%

Bystolic® /Byvalson®



-




164.2




0.5




-




164.7




-




165.1




0.5




-




165.6




(0.9)




(0.5)

%

Alphagan®/Combigan®



92.7




-




43.4




-




136.1




93.4




-




41.3




-




134.7




1.4




1.0

%

Eye Drops



53.7




-




71.2




-




124.9




50.2




-




67.7




-




117.9




7.0




5.9

%

Lo Loestrin®



-




120.0




-




-




120.0




-




105.7




-




-




105.7




14.3




13.5

%

Namenda XR®



-




114.3




-




-




114.3




-




146.9




-




-




146.9




(32.6)




(22.2)

%

Estrace® Cream



-




101.6




-




-




101.6




-




98.6




-




-




98.6




3.0




3.0

%

Breast Implants



58.0




-




38.1




-




96.1




51.1




-




35.6




-




86.7




9.4




10.8

%

Viibryd®/Fetzima®



-




86.5




1.0




-




87.5




-




87.6




-




-




87.6




(0.1)




(0.1)

%

Alloderm



84.6




-




1.5




-




86.1




-




-




-




-




-




86.1



n.a.


Vraylar™



-




80.2




-




-




80.2




-




32.4




-




-




32.4




47.8




147.5

%

Ozurdex ®



24.6




-




50.2




-




74.8




20.9




-




43.4




-




64.3




10.5




16.3

%

Coolsculpting Consumables



50.3




-




13.8




-




64.1




-




-




-




-




-




64.1



n.a.


Asacol®/Delzicol®



-




49.5




11.9




-




61.4




-




72.2




14.2




-




86.4




(25.0)




(28.9)

%

Carafate ® /Sulcrate ®



-




58.7




0.7




-




59.4




-




56.4




0.6




-




57.0




2.4




4.2

%

Zenpep®



-




56.8




-




-




56.8




-




52.5




-




-




52.5




4.3




8.2

%

Aczone®



46.7




-




0.2




-




46.9




69.0




-




-




-




69.0




(22.1)




(32.0)

%

Canasa®/Salofalk®



-




39.0




4.6




-




43.6




-




47.2




4.4




-




51.6




(8.0)




(15.5)

%

Coolsculpting Systems & Add On Applicators



33.1




-




10.2




-




43.3




-




-




-




-




-




43.3



n.a.


Viberzi®



-




40.9




0.2




-




41.1




-




30.9




-




-




30.9




10.2




33.0

%

Armour Thyroid



-




38.5




-




-




38.5




-




39.1




-




-




39.1




(0.6)




(1.5)

%

Saphris®



-




37.2




-




-




37.2




-




40.8




-




-




40.8




(3.6)




(8.8)

%

Namzaric®



-




37.0




-




-




37.0




-




14.9




-




-




14.9




22.1




148.3

%

Rapaflo®



28.3




-




1.8




-




30.1




25.2




-




1.5




-




26.7




3.4




12.7

%

Teflaro®



-




29.1




-




-




29.1




-




33.3




-




-




33.3




(4.2)




(12.6)

%

Savella®



-




24.0




-




-




24.0




-




28.1




-




-




28.1




(4.1)




(14.6)

%

SkinMedica®



18.7




-




1.4




-




20.1




25.8




-




-




-




25.8




(5.7)




(22.1)

%

Avycaz®



-




16.9




-




-




16.9




-




4.8




-




-




4.8




12.1



n.m.


Dalvance®



-




16.1




-




-




16.1




-




10.3




-




-




10.3




5.8




56.3

%

Latisse®



13.6




-




1.9




-




15.5




17.2




-




1.9




-




19.1




(3.6)




(18.8)

%

Tazorac®



15.1




-




0.1




-




15.2




27.5




-




0.2




-




27.7




(12.5)




(45.1)

%

Lexapro®



-




12.9




-




-




12.9




-




15.6




-




-




15.6




(2.7)




(17.3)

%

Kybella® /Belkyra®



9.6




-




1.6




-




11.2




14.2




-