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Allergan posted second-quarter profit that beat analysts' estimates as sales surged for its blockbuster wrinkle treatment Botox.
Earnings excluding some items were $3.35 a share, the company said Monday. Analysts surveyed by Bloomberg predicted $3.31 a share. Revenue rose 1.5 percent to $3.68 billion, short of the $3.72 billion average estimate.
Allergan, which is based in Dublin but has executive offices in New Jersey, completed the $40.5 billion sale of its generic drugs business to Teva Pharmaceutical Industries last week.
Chief Executive Brent Saunders has said Allergan plans to use some of the proceeds to pay off debt and buy back shares, though it also will look for "tuck-in deals" that fit its existing lines of business. In April, its $160 billion planned merger with Pfizer fell through after U.S. regulators introduced rules to limit the tax benefits of the transaction.
Allergan may not be averse to pursuing a big acquisition. The Wall Street Journal reported last week that the company was among those considering a takeover of Biogen Inc., which has a market value of about $70 billion, though many analysts expressed skepticism about such a bid.
The shares dropped less than 1 percent to $252 before the markets opened in New York.
Other highlights from the financial statement:
- Allergan predicts 2016 earnings per share of $13.75 to $14.20. Analysts anticipated $13.94.
- Second-quarter Botox sales of $719.7 million, beating the average estimate of $699.5 million.
- Eye medication Restasis sales at $390.6 million, versus prediction of $346 million
- Quarterly net loss widens to $501.7 million, or $1.44 a share, from a loss of $243.1 million, or 80 cents a share, a year earlier.