Allergan Plc reported a higher-than-expected quarterly profit and lifted its full-year adjusted earnings forecast on Tuesday as strong sales of wrinkle injection Botox allayed some concerns around growing competition for the popular treatment.
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The company's other top drug, Restasis, registered lower sales during the quarter but the declines were not as severe due to a delay in the launch of cheaper copycats of the dry-eye treatment.
While Botox continues to dominate the medical aesthetics market and lead the company's sales, rival treatments from smaller drugmakers Revance Therapeutics and Evolus Inc are trying to eat into Allergan's market share.
The company said last month it would double its direct-to-consumer advertising spending and beef up its sales force bid to retain Botox's market-leading position.
The company now expects full-year adjusted net income of $16.20-$16.60 per share, compared with its previous forecast of $16.00-$16.50 per share, with the company partly attributing the rise to the delay in generic competition for Restasis.
Restasis sales fell 18.5 per cent to $311.6 million in the quarter. Allergan said in July it expected generic competition for Restasis to enter the market between Aug. 1 and Oct. 1.
Botox sales jumped 13.6 per cent to $879.7 million in the quarter. Analysts had expected sales of $847.4 million, according to Refinitiv data.
Concerns remain about competition for Botox, the eventual entry of generic competition for Restasis and lack of blockbuster drugs in Allergan's pipeline, Cantor Fitzgerald analyst Louise Chen said.
Sales at the company's Medical aesthetics business rose 9.1 per cent to $657 million in the United States. Allergan has said revenue from that business, which includes dermal filler Juvederm and its fat-freezing CoolSculpting system, may double by 2025.
Excluding items, the company earned $4.25 per share, beating analysts' average estimate of $4.04, according to Refinitiv data.
Net revenue fell 3 per cent to $3.91 billion, hurt by increased competition for its Alzheimer's therapy Namenda and Estrace cream, but edged past analysts' estimates of $3.89 billion.
The company posted net loss attributable to ordinary shareholders of $37.9 million, or 11 cents per share, in the third quarter ended Sept. 30, compared with the loss of $4.03 billion, or $12.07 per share, a year ago, which included a one-time charge.