Allergan issues prelim 2018 guidance ahead of J.P. Morgan Healthcare Conference and provides tax/jobs update (170.56 -1.73)
- Co sees FY18 (Dec) non GAAP EPS of =$15.25 vs. $15.85 Capital IQ Consensus Estimate; sees FY18 (Dec) revs of ~$15.0-15.3 billion vs. $15.65 bln Capital IQ Consensus Estimate. Ongoing cost reductions of $300 million -- $400 million from Fiscal Year 2017 non-GAAP operating expenses. Expected 2018 non-GAAP tax rate of no more than ~15%.
- No generic entry for RESTASIS prior to the second quarter of 2018....Additional impact of generic entries: ESTRACE (generic already in market); NAMENDA XR (early first quarter of 2018); DELZICOL (early second quarter of 2018); ACZONE (highly genericized market).
- 2017 Tax Cut and Jobs Act Impact - On December 22, 2017 the Tax Cut and Jobs Act was enacted - Overall, Allergan anticipates the future impact of the TCJA will be broadly neutral to the Company's non-GAAP effective tax rate over time, with a moderate increase for 2018 as compared to full year 2017. The Company will provide further information on its expected effective tax rate as determined under GAAP and our non-GAAP effective tax rate as part of our fourth quarter and full-year 2017 earnings report.
- Teva (TEVA) Securities Divestiture - Allergan continues to prudently divest its remaining holding in securities of Teva Pharmaceuticals International Ltd. including, as previously disclosed, through its Forward Sale Agreement with J.P. Morgan for 25 million of the 100 million Teva securities with a February 2018 maturity date. Allergan plans to sell its remaining position in 2018 through Forward Sale Agreements and/or open market sales.