Allergan's 1st Quarter In Line With Expectations

Wide-moat

Overall, performance of Allergan’s key products continues to live up to our expectations, but this year will remain a challenge from generic competition on a number of products like Restasis and Delzicol. Botox grew 12% thanks to strong U.S. therapeutic and international cosmetic sales. While facial filler growth slowed on promotional efforts, we still have an optimistic outlook for this franchise thanks to healthy demand and new products. Growth should accelerate over the back half of the year. Similarly, management’s efforts to shift CoolSculpting to direct distribution in international markets should improve from current growth affected by the transition. We still expect growth to improve in 2019 despite ongoing concerns on new competition on Botox, including the launch of competing CGRPs in migraine.

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