Allergan celebrates Street-beating Q4 as clock ticks on Teva, Pfizer deals

Allergan CEO Brent Saunders

The clock is ticking on Allergan's ($AGN) previously announced deals with Pfizer ($PFE) and Teva ($TEVA), with the companies waiting to clear the final hurdles. In the meantime, Allergan got a boost from Street-beating Q4 results powered by its branded drug business.

Revenue and adjusted profit both topped analysts' expectations. Allergan's revenue shot up to $4.2 billion in Q4, beating the Street's prediction of $4.19 billion. Earnings-per-share excluding charges stemming from dealmaking rang in at $3.41, surpassing analysts' estimates of $3.34 per share.

Old and new drugs both chipped in, with some products showing double-digit sales increases. Botox charted a 43% jump with $655.7 million in sales. Allergan CEO Brent Saunders expects that gift to keep on giving. Botox "still has a decade or more of growth ahead," he said during the company's Q4 earnings call, and it'll contribute to the $17 billion in 2016 revenue that the company expects to haul in.

Eye drug Restasis turned in $364 million. And Alzheimer's med Namenda XR raked in $189 million in sales. The drug launched last year right before its predecessor Namenda lost patent protection, giving Allergan more clout as it looks to make more of a mark in branded drugs in 2016.

The numbers lift at least one weight off Allergan's shoulders. The company is still waiting to close its deals with Teva and Pfizer, and according to Saunders, Allergan is making progress on those fronts.

Teva and Allergan "have been working incredibly hard" to close their $40 billion deal, Saunders said. And "given the sheer number of products there, we should be understanding of the time it takes," he added. The deal will give Allergan a 10% stake in Teva and will hand the latter Allergan's generic business. When all is said and done, the pact will boost Teva's position as the world's leading generics maker.

The pair recently made some moves to speed the deal ahead. Last week, Teva and Allergan offered concessions to EU regulators that could allay regulators' antitrust concerns. If all goes to plan, the deal should close by the end of Q1 or early Q2, Saunders said on the earnings call.

Meanwhile, Allergan and Pfizer are "moving ahead full steam" with their deal, which the companies announced in November. The $160 billion buyout will create the world's largest pharma company and shift Pfizer's domicile abroad.

Even though the Treasury Department's latest rules on tax inversions could put a damper on things, Saunders doesn't seem too worried. The companies are in a "strong position to close the deal in the second half of the year," Saunders said. "I don't see any obstacles."

Don't expect any more deals in the interim, though. After last year's dealmaking streak, including the company's $2.1 billion buyout of Kythera and its double-chin treatment, Allergan is ready to take a breather. The company does not see any "large transformational M&A in the short-term," Saunders said.

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