Allergan, Inc. (NYSE:AGN) released the results from its second fiscal quarter this morning, posting earnings of $1.51 per share, excluding items, on $1.83 billion in revenue. Analysts had been expecting the drug maker to report earnings per share of $1.44 on $1.77 billion in revenue for the quarter. In the second quarter of 2013, the company’s non-GAAP earnings per share were $1.22 per share.
Diluted earnings per share were $1.37, compared to $1.17 per share in the same quarter a year ago. The Botox maker reported a 15.9% increase in total product net sales year over year. Net sales of the company’s special pharmaceuticals rose 13.2% year over year, while net sales of Allergan’s core medical devices rose 25.8%.
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The drug maker said it will begin a restructuring plan in the rest of this year. It estimates pre-tax savings of $475 million in the next calendar year. The company said it will achieve synergies “by focusing resources on the highest value opportunities, streamlining its organizational structure, simplifying processes and interfaces, optimizing site footprints, and enhancing strategic sourcing of goods and services.” Allergan plans to cut 1,500 workers or 13% of its workforce and eliminate 250 currently vacant positions.
The company reconfirms its expectations of double digit sales growth, including a compounded annual growth rate of more than 20% in earnings per share. For this year, Allergan expects earnings of between $5.74 and $5.80 per share. For next year, it projects earnings of between $8.20 and $8.40 per share, and for 2016, it expects earnings per share of around $10.
Allergan’s board of directors also declared a second quarter dividend of 5 cents per share. That will be payable on Sept. 5 to shareholders of record on Aug. 15.
Valeant versus Allergan
Allergan also provided an update on its battle against Valeant Pharmaceuticals Intl Inc (NYSE:VRX) today. The company reminded shareholders that last month, it recommended that shareholders reject Valeant’s offer. Allergan said that the offer is “grossly inadequate, substantially undervalues Allergan, creates significant risks and uncertainties for Allergan stockholders and is not in the best interests of Allergan and its stockholders. Allergan filed this recommendation with the SEC on Schedule 14D-9.”
This morning Valeant once again advanced its battle to buy Allergan. The drug maker said it contacted regulators in the U.S. and Canada about the proposed acquisition. Valeant again accused Allergan of making statements that are misleading, specifically in connection with its Bausch + Lomb division. Allergan said in a regulatory filing on Friday that sales of Valeant’s eye care products were declining or stagnant. However, the company said the unit’s sales rose by about 6% during the second quarter.
Valeant has offered to pay $53 billion for Allergan.