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How Did Allergan’s US General Medicines Segment Perform in 2Q17?

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US General Medicines segment

Allergan’s (AGN) US General Medicines segment includes products from the central nervous system franchise, the gastroenterology franchise, the women’s health franchise, the anti-infectives franchise, and the established brands franchise.

The US General Medicines segment reported revenues of $1.43 billion in 2Q17, a 1.5% decline as compared to $1.45 billion in 2Q16. The decrease in revenues was mainly due to lower sales of Namenda XR, Asacol, and Minastrin 24. However, the strong sales of Linzess, Lo Loestrin, Namzaric, Viberzi, and Vraylar partially offset the decline during 2Q17.

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Franchise-wise performance

  • The central nervous system (or CNS) franchise including Alzheimer’s products reported revenues of $346.6 million in 2Q17, a 9.2% increase as compared to $317.5 million in 2Q16. The growth was driven by the strong performance of Vraylar and Namzaric, partially offset by lower sales of Namenda XR. Other drugs like Viibryd and Saphris also reported growth in revenues during 2Q17.
  • The gastroenterology (or GI) franchise reported revenues of $410.8 million in 2Q17, a ~7.1% decline as compared to 2Q16. The decline was due to lower sales in Asacol/Delzicol, partially offset by an increase in sales of Linzess, Viberzi, and Zenpap.
  • The women’s health franchise reported revenues of $248.0 million in 2Q17, a 16.2% decline as compared to 2Q16. The decline was due to lower sales of Minastrin 24 and Estrace cream, partially offset by the strong performance of Lo Loestrin and Taytulla.
  • The anti-infectives franchise reported revenues of $67.8 million in 2Q17, a 7.4% increase as compared to 2Q16, driven by the strong performance of Dalvance and Avycaz, offset by lower sales of Teflaro.
  • The diversified brands reported revenues of $305.5 million in 2Q17, a 1% decrease as compared to 2Q16.

To divest the company-specific risks, investors can consider ETFs like the VanEck Vectors Morningstar Wide Moat ETF (MOAT), which holds 2.4% of its total assets in Allergan (AGN). MOAT also holds 2.5% in Eli Lilly (LLY), 2.8% in Biogen (BIIB), and 2.6% in Amgen (AMGN).

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