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How Did Allergan’s International Brands Segment Perform?

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The International Brands segment

Allergan’s (AGN) international brands segment includes revenues from both branded products and aesthetics products outside the US markets. These sales are primarily attributable to the acquisition of Allergan. The total revenues for the International Brands segment were $673.3 million during 1Q16. The increased contribution is not comparable on a year-over-year basis.

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Performance of the International Brands segment

The 1Q16 performances of the International Brands segment’s franchises are as follows:

  • The eye care franchise reported revenues of $291.5 million during 1Q16, which includes the sales of products for dry eyes, glaucoma, and other eye conditions. The dry eyes products include Refresh and Restasis while glaucoma products include Alphagan, Combigan, and Lumigan. Some other eye care products include Acular LS, Acuvail, Botox, Elestat, Lastacaft, and Pred Forte.
  • The plastic surgery products reported revenues of $36.8 million during 1Q16. These products include the Natrelle brand of products for breast augmentation, including silicone-filled implants and saline-filled implants, as well as breast reconstruction products.
  • The facial aesthetics franchise reported revenues of $205.5 million during 1Q16. The facial aesthetics franchise includes Botox cosmetic products, Latisse, Juvederm brand of dermal fillers, Prevage, and SkinMedica skin care products.
  • Other therapeutics reported revenues of $139.5 million during 1Q16. Other therapeutics include the Botox range of products for urologic and neurosciences.

Ozurdex revenues rose by 33% while Botox cosmetics revenues rose by 20% and filler revenues rose by 35% during 1Q16 as compared to 1Q15. Gross margin for the International Brands segment rose by 5.3% to 85.3% in 1Q16.

Investors can consider ETFs like the PowerShares Dynamic Pharmaceuticals (PJP), which holds ~4.9% of its total assets in Allergan, or the Vanguard Healthcare ETF (VHT), which holds ~3.4% of its total assets in Allergan. Apart from Allergan, PJP also holds 5.2% of its total assets in Bristol-Myers Squibb (BMY), 5.0% in Gilead Sciences (GILD), and 5.1% in Merck & Co. (MRK).

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