US Specialized Therapeutics segment
Allergan’s (AGN) US Specialized Therapeutics segment includes branded products from various therapeutic areas like eye care, medical aesthetics, medical dermatology, neurosciences, and urology.
The US Specialized Therapeutics segment reported revenues of $1.7 billion in 2Q17, a 15.2% increase as compared to $1.5 billion during 2Q16.
- The eyecare franchise includes various products like Restasis, Alphagan, Ozurdex, and other eye care products. The franchise revenues were $600.1 million in 2Q17, a 5.6% decrease as compared to 2Q16 due to lower sales of Restasis.
- The US medical aesthetics product portfolio includes facial aesthetics products, medical dermatology products, and a wide range of fillers, silicone gel and saline breast implants under Botox brands, body contouring, and skincare products. The franchise revenues were $643.9 million in 2Q17 as compared to $419.8 million in 2Q16.
- The regenerative medicines, a part of US medical aesthetics, includes Alloderm and other products. The franchise reported revenues of $115.8 million during 2Q17.
- The plastic surgery franchise includes breast implants and breast reconstruction products, as well as other plastic surgery products. The franchise reported revenues of $61.3 million during 2Q17.
- The skincare products include the Latisse brand. The franchise reported revenues of $38.7 million in 2Q17, a decline as compared to $46.8 million in 2Q16.
- The facial aesthetics products, a part of the US medical aesthetics segment, reported revenues of $349.2 million during 2Q17.
- The body contouring products reported revenues of $78.9 million in 2Q17.
- The medical dermatology franchise includes advanced dermatology products like Aczone, Botox Hyperhidrosis, Tazorac, and other products. The franchise reported revenues of $81.8 million during 2Q17 as compared to $97.1 million in 2Q16.
- The Neuroscience and Urology franchise includes products like Botox and Rapaflo. The franchise reported revenues of $372.6 million in 2Q17 compared to the $326.3 million in 2Q16.
To divest the company-specific risks, investors can consider ETFs like the PowerShares Dynamic Pharmaceuticals ETF (PJP), which holds 2.6% of its total assets in Allergan (AGN). PJP also holds 4.5% in Merck and Co. (MRK), 3.0% in Biogen (BIIB), and 4.9% in Pfizer (PFE).