NEW YORK (AP) — Allergan will buy back up to $10 billion in stock following a swing to a first-quarter profit on a strong surge in sales of key drugs, including the wrinkle and muscle spasm treatment Botox.
Allergan shares rose 4 percent in midday trading Tuesday.
The share buyback plan is contingent on the sale of the drug developer's generics unit to Teva, which is expected to close by the end of the year. Meanwhile, the company is consolidating its executive team under current CEO Brent Saunders.
The announcement came as the Dublin-based company swung to a first-quarter profit of $255.7 million, or 47 cents per share, after reporting a loss in the same period a year earlier.
Earnings, adjusted for one-time gains and costs, were $3.04 per share. That surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $2.99 per share.
Revenue jumped 48 percent to $3.8 billion in the period. Four analysts surveyed by Zacks expected $3.95 billion.
The key revenue driver was Botox, with global sales surging to $637.5 million from $84 million. The drug is approved to treat wrinkles, muscle spasms, and for bladder control.
Allergan expects full-year revenue of $17 billion.
Executive changes at the company include consolidating some responsibilities under the new roles of chief commercial officer and chief operating officer. Bill Meury has been appointed chief commercial officer and Robert Stewart has been appointed chief operating officer.
Allergan shares rose $8.48, or 4 percent, to $222.19 in midday trading Tuesday. Its shares have declined 24 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AGN at http://www.zacks.com/ap/AGN
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