Reuters/ Jim Young
- Allergan missed on revenue, but beat on earnings.
- The company raised the lower end of its adjusted earnings guidance.
(Reuters) - Botox maker Allergan Plc reported higher-than-expected third-quarter profit on Wednesday, driven by strength in its medical aesthetics and eye care businesses.
Allergan's shares rose 1.5 percent to $179.90 in premarket trading.
The company also slightly lifted its expectation for 2017 profit, saying it now expects adjusted earnings of $16.15 to $16.45 per share, compared to a previous range of $16.05 to $16.45.
Allergan's medical aesthetics business generated $602.3 million in sales in the third quarter ended Sept. 30, up nearly 55 percent, while sales of dry-eye drug Restasis came in at $382.3 million, beating Cowen & Co's estimate of $355 million.
Allergan has in recent years been lobbying hard to protect Restasis - the hallmark of its top-earning eye-care business - from being ousted by generic rivals.
A Texas court last month invalidated Restasis patents on grounds that they cover ideas that are obvious, making it possible for rival generics to hit the market by 2018.
Allergan said it took an impairment charge of $3.2 billion related to Restasis, as well as $1.3 billion in impairment charge related to Teva securities.
As a result, the company reported a net loss of $4.03 billion or $12.07 per share, compared with a profit of $15.15 billion or $38.58 per share a year earlier.
Excluding one-time items, Allergan earned $4.15 per share, topping analysts' average estimate of $4.05, according to Thomson Reuters I/B/E/S.
Net revenue rose 11.4 percent to $4.03 billion, matching analysts' expectations. (Reporting by Tamara Mathias in Bengaluru; Editing by Anil D'Silva)