US Specialized Therapeutics segment
As we discussed earlier, Allergan (AGN) classified its business into three segments. The US Specialized Therapeutics segment refers to the branded products including the eye care, medical aesthetics, medical dermatology, and neuroscience and urology franchise.
During 3Q16, the revenues for the US Specialized Therapeutics segment rose 12.1% to $1.45 billion—compared to $1.30 billion during 3Q15.
Performance of the US Specialized Therapeutics
The performance of each of the franchise for the US Specialized Therapeutics segment during 3Q16 is as follows:
- Eye care revenues rose to $608.5 million in 3Q16—a 12.7% increase compared to 3Q15. The growth was driven by Restasis, Alphagan/Combigan, and Ozurdex sales. It was partially offset by lower sales of Lumigan/Ganfort and other eye care products.
- The US medical aesthetics franchise includes facial aesthetics, medical dermatology products, and a wide range of silicone gel and saline breast implants. The facial aesthetics franchise reported revenues of $293.7 million during 3Q16—compared to $249.0 million in 3Q15. The product portfolio includes Botox Cosmetics which reported a 9.5% increase in sales during 3Q16, fillers which reported 17.1% growth, and the newly launched Kybella.
- Plastic surgery products reported revenues of $52.2 million during 3Q16—a fall compared to $54.3 million in 3Q15. The franchise sales were driven by an increase in revenues from breast implants and breast reconstruction products. They were partially offset by lower sales of other plastic surgery products.
- Skincare product revenues fell to $43.0 million in 3Q16, following the growth of revenues from SkinMedica and Latisse products.
- Medical dermatology reported revenues of $116.1 million during 3Q16—compared to $107.8 million in 3Q15. The franchise has advanced dermatology products to treat skin diseases and improve skin appearance. During 3Q16, the franchise reported revenue growth for Aczone and Botox Hyperhidrosis. It was partially offset by lower revenues for Tazorac and other dermatology products.
- The revenues for the neuroscience and urology franchise rose ~13.5% to $330.7 million in 3Q16—compared to $291.4 million in 3Q15. The growth was mainly driven by increased sales of Botox Therapeutics. It was partially offset by lower Rapaflo sales.
The gross margin for the US Specialized Therapeutics segment rose 0.7% to 95.2% during 3Q16—compared to 94.5% during 3Q15. The selling, general and administration expenses as a percentage of revenues rose 3.5% during 3Q16 due to the launch of Kybella and overall sales force expansion.