US General Medicines segment
As we discussed earlier, Allergan’s (AGN) US General Medicine segment includes the central nervous system, gastroenterology, women’s health, anti-infectives, and established brands franchise.
During 3Q16, the revenues for the US General Medicine segment fell 4.1% to $1.49 billion—compared to $1.55 billion in 3Q15. The decline in its revenues was due to lower sales of Asacol HD and Namenda XR/IR. It was partially offset by increased sales of Linzess, Lo Loestrin, and new products Viberzi and Vraylar.
Performance of the US General Medicines segment
The performance of each of the franchise for the US General Medicines segment during 3Q16 is as follows:
- The central nervous system (or CNS) franchise is number one in Alzheimer’s products. The franchise reported a revenue decline of over 20% to $325.5 million during 3Q16. It was driven by a decline in sales of Namenda XR, Namenda IR, and Saphris. Namenda IR sales fell ~94.7% during 3Q16—compared to 3Q15.
- The gastroenterology franchise reported growth of over 8.2% in revenues at $431.4 million during 3Q16—compared to $398.6 million in 3Q15. The gastroenterology franchise reported revenue growth for all of its products except Asacol/Delzicol.
- Allergan’s women health franchise leads in the US markets. Its revenues rose ~13.9% to $305.3 million during 3Q16—compared to $268.0 million in 3Q15. The growth in the franchise was driven by Lo Loestrin, Minastrin 24, and Estrace Cream. It was partially offset by Liletta.
- The anti-infectives franchise had nearly flat revenues at $52.5 million during 3Q16. The growth was driven by all of the products including Teflaro, Avycaz, and Dalvance.
- The established brands’ revenues fell by more than 20.3% to $319.3 million in 3Q16 due to lower sales of Enablex, Lexapro, Savella, and PacPharma products and other established brands. It was partially offset by Bystolic and Armour Thyroid.
New product launches including Viberzi and Vraylar reported strong performance, while the growth was offset by lower sales of Asacol and Namenda IR. The gross margin for the US General Medicines segment rose to 85.5% during 3Q16—compared to 85.3% during 3Q15. The selling, general and administration expenses rose to 22.5% of the total revenues during 3Q16 due to increased marketing spends on new products including Viberzi and Vraylar.