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Allergan Reports Strong Revenue Growth and Q2 2018 Earnings

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Allergan’s revenues

Allergan (AGN) surpassed Wall Street analysts’ estimates for earnings per share (or EPS) and revenues, reporting non-GAAP EPS of $4.42 on revenues of $4.1 billion. Estimates for EPS stood at $4.12 on revenues of $3.9 billion for Q2 2018.

The above chart compares EPS and revenues for Allergan since Q1 2017.

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Revenues in Q2 2018

For Q2 2018, Allergan reported 2.9% growth in revenues to ~$4.12 billion, compared to revenues of ~$4.01 billion in Q2 2017.

Allergan reports its business revenues in three business segments.

US Specialized Therapeutics

The US Specialized Therapeutics segment includes revenues from US sales of medical dermatology products, medical aesthetics products, eye care products, neuroscience products, and urology products.

The segment’s revenues increased 6.5% to $1.83 billion in Q2 2018, compared to $1.72 billion in Q2 2017. The growth was driven by medical aesthetics, including Botox Cosmetic, Alloderm, CoolSculpting, and Botox Therapeutic.

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US General Medicine

The US General Medicine business includes revenues from US sales of general products in the anti-infectives, central nervous system, gastroenterology, women’s health, diversified brands, and other products spaces.

The segment’s revenues decreased 7.5% to $1.32 billion in Q2 2018, compared to $1.43 billion in Q2 2017. The decrease was driven by lower sales of Estrace and Namenda XR, offset by the strong performance for Vraylar, Linzess, Lo Loestrin, Avycaz, and other anti-infectives.

International Business

The International Business segment includes revenues from sales outside US markets. The revenues include eye care products, medical aesthetics products, Botox therapeutics products, and other products.

The segment’s revenues increased 10.5% to $949 million in Q2 2018, compared to $859 million in Q2 2017. This growth includes growth of 8.1% in revenues at constant exchange rates and a 2.4% positive impact from foreign exchange in Q2 2018.

The SPDR S&P Pharmaceuticals ETF (XPH) invests 4.5% of its portfolio in Allergan (AGN), 4.5% in Pfizer (PFE), 4.4% in Merck & Co. (MRK), and 4.7% in Eli Lilly and Co. (LLY).

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