Allergan Updates H2 Continuing Operations Forecast

(RTTNews) - Allergan plc (AGN) on Monday announced its updated second-half 2015 continuing operations financial forecast. The forecast reflects adjustments for the expected discontinued operations stemming from the sale of its Global Generics business to Teva Pharmaceuticals (TEVA).

Allergan intends to begin reporting its Global Generics business as discontinued operations with its third quarter 2015 results. The transaction with Teva is expected to close in the first quarter of 2016.

Continuing operations includes the U.S. Brands, U.S. Medical, International Brands and Anda distribution segments.

For the second-half of 2015, Allergan expects to report non-GAAP continuing operations as follows:

Revenue is expected to be greater than $8 billion; adjusted earnings before interest and taxes (EBIT) are expected to be between $3.8 billion and $4.0 billion; non-GAAP earnings per share to be between $6.25 and $6.65.

Following the close of the divestiture of the Generics business to Teva, New Allergan expects to have a powerful financial profile to drive continued long-term growth.

It expects in the long term, 10% branded revenue growth; non-GAAP gross margins of 77% to 79% with additional long-term expansion anticipated; non-GAAP SG&A as a percentage of revenue between 21-24%, declining within that range over time.

"New Allergan will have strong double-digit revenue growth and will be a development powerhouse stacked with 70 mid-to-late stage R&D projects to address customer and patient needs," said Brent Saunders, CEO and President.

"The continued robust performance of our overall business and strong mid-to-late stage pipeline puts Allergan in a strong position to meet our growth targets for the remainder of the year and over the long-term."