For the first quarter 2016, adjusted EBITDA from continuing operations increased 65 percent to $1.8

Transcription

1 // News Allergan Allergan Reports Strong First Quarter Continuing Operations Perforance with Increase in Net Revenue to Billion and Growth in Non GAAP Diluted EPS to Q GAAP Loss fro Continuing Operations Per Share of Increase in Reported Branded Net Revenues Results Driven by Double Digit Pro Fora Branded Revenue Growth Q Non GAAP Operating Incoe fro Continuing Operations Increases to Billion R&D Productivity Continues in Q Copany Reiterates Continuing Operations Guidance Board Authorization for Share Repurchase Progra of Up to Billion DUBLIN, May, /PRNewswire/ Allergan plc NYSE: AGN reported strong perforance with net revenue fro continuing operations increasing percent to billion for the quarter ended March,, copared to billion in the first quarter On a non GAAP basis, diluted earnings per share fro continuing operations increased percent to for the first quarter, copared to in the first quarter GAAP loss fro continuing operations per diluted share for the first quarter was, copared to GAAP loss fro continuing operations per diluted share of in the prior year period GAAP results were ipacted by aortization, acquisition related expenses, research and developent R&D expenses resulting fro the acquisition of R&D assets fro Anterios, Pfizer related expenses, acquisition accounting valuation related expenses and severance associated with acquired businesses, ainly the acquisition of Allergan onmarch, These results include Allergan results as of the date of the close of the acquisition, March, Logo "Allergan once again delivered strong perforance in the first quarter of, powered by doubledigit pro fora branded revenue growth and our top global products within the US Brands, US Medical and International Brands segents We also grew our Non GAAP EPS by percent, arking the seventh consecutive quarter of double digit, year over year EPS growth since I becae the CEO in July," said Brent Saunders, CEO and President of Allergan "Thanks to the effort of our, colleagues around the world, Allerganreains the ost dynaic and exciting copany in our industry That dynais is evident in our results, in the way we operate our business, in the way we build category leadership through our Open Science odel and in our highly responsive, service oriented approach to custoers" "Our branded business continues to grow at a fast pace and is very well positioned in each of our seven therapeutic areas As we look ahead, we see durable global brands with strong fundaentals, broad based geographic expansion, and any opportunities to continue growing our innovative business," added Saunders For the first quarter, adjusted EBITDA fro continuing operations increased percent to irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

2 // News Allergan billion, copared to billion for the first quarter Non GAAP operating incoe fro continuing operations in the first quarter was billion GAAP operating loss fro continuing operations in the first quarter was illion Cash flow fro operations for the first quarter of was billion and cash and arketable securities were billion as of March, Cash fro operations in the quarter was ipacted by the acquired R&D assets fro Anterios and integration expenses Excludes Fx ipact, Naenda IR and divestitures Excludes Fx ipact, Naenda IR and divestitures Operating Expenses Total non GAAP SG&A was billion for the first quarter copared to illion in the prior year period Non GAAP R&D investent for the first quarter was illion As of March,, the Copany had outstanding indebtedness of billion priarily as a result of legacyallergan, Forest and other recent acquisitions Aortization and Tax Aortization expense for the first quarter was billion, copared to illion in the first quarter of The increase was priarily due to theallergan acquisition The Copany's non GAAP continuing operations tax rate was percent in the first quarter The Copany experienced a benefit to its tax rate as a result of the ipact of its entire interest expense being included within continuing operations earnings Top Global Branded Product Highlights The following table represents revenue fro Allergan's top prooted products ALLERGAN PLC NET REVENUES TOP GLOBAL PRODUCTS Unaudited; in illions Three Months Ended March, Global US International C h C C a Ch ha ha n an Chan ng ng g Change ge ge e e e irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

3 // News Allergan n n n Botox n n Restasis n n n n Fillers Naen n da XR a Luiga n n n /Ganf n ort Bystolic Linzess n /Const ella Alphaga n n n /Co n bigan Asacol /Delzicol Lo Loestrin Viibryd /Fetzi n a a irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

4 // News Allergan Estrace n Crea a Minastri n n n Silicone n Iplants Carafat e / Sulcrate n a n n Ozurdex n n Aczone n n a Naen n da IR a Other Product s n Revenu es Total Products Revenue,,,,, s ANDA Revenu n es a irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

5 // News Allergan Total Net Revenue s,,,,, For the first quarter, total global branded product revenues were billion versus billion in the prior year quarter Top key branded product highlights in the quarter included: Botox revenues in the first quarter of were illion, driven by continued strong perforance in both aesthetic and therapeutic indications Restasis revenues in the first quarter of were illion, driven by continuing strong prootional efforts Fillers' revenues in the first quarter of were illion, reflecting continued strong perforance Naenda XR revenues in the first quarter of were illion, as prescriptions and forulary coverage reained stable following the loss of exclusivity of Naenda IR Luigan /Ganfort revenues in the first quarter of were illionreflecting stable perforance across Allergan's glaucoa product franchise Bystolic revenues in the first quarter of reained stable at illion Linzess /Constella revenues in the first quarter of were illion, driven by continued strong OTC conversion oentu and increasing sales in the long ter care arket Asacol /Delzicol revenues in the first quarter of were illion, ipacted by lower prescriptions and trade buying patterns Viibryd /Fetzia revenues in the first quarter of were illion, driven by double digit prescription growth in Fetzia Lo Loestrin revenues in the first quarter of were illion, driven by continuing strong deand and prootional efforts Minastrin and Estrace Crea revenues in the first quarter of were illion and illion, respectively Silicone breast iplant revenues in the first quarter of were illion, as a result of increased arket share First Quarter Business Segent Results US Brands Three Months Ended March, Change Unaudited; in illions Dollars Central Nervous Syste CNS Eye care n Gastroenterology GI Woen's Health Urology Infectious Disease Other Net revenues,, Operating expenses: Cost of sales Selling and arketing irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

6 // News Allergan General and adinistrative Segent contribution,, Segent argin Segent gross argin Excludes aortization and ipairent of acquired intangibles including product rights, as well as indirect cost of sales not attributable to segent results US Brands net revenue of billion for the first quarter represents a percent increase over billion in the first quarter of Growth was ainly attributed to the acquisition of legacy Allergan products, including Botox, Restasis, Luigan /Ganfort, and Cobigan, and strong growth fro Linzess /Constella, Carafate /Sulcrate, Zenpep, Naenda XR, Lo Loestrin, Estrace Crea and Minastrin and new product launches Avycaz, Dalvance and Liletta US Brands gross argin for the first quarter of was percent Selling & arketing S&M expenses increased percent in the first quarter due ainly to the acquisition of legacy Allergan and the launches of Viberzi and Vraylar offset, in part, by the ipact of synergies fro Forest Laboratories andallergan acquisitions G&A expenses increased versus first quarter reflecting the addition of legacy Allergan, which was offset by related synergies fro the acquisitions of Forest Laboratories and Allergan Overall, net segent contribution for the first quarter increased percent over the prior year period to billion priarily as a result of the Allergan acquisition US Medical Aesthetics Three Months Ended March, Change Unaudited; in illions Dollars Facial Aesthetics n Medical Deratology and Other n Plastic Surgery n Net revenues n Operating expenses: Cost of sales n Selling and arketing n General and adinistrative n Segent contribution n Segent argin Segent gross argin Excludes aortization and ipairent of acquired intangibles including product rights, as well as indirect cost of sales not attributable to segent results First quarter US Medical Aesthetics net revenue was illionreflecting continued strong perforance in BOTOX and Fillers including Juveder irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

7 // News Allergan US Medical Aesthetics selling and arketing S&M expenses for the first quarter of were illion, and general & adinistrative expenses G&A for the first quarter of were illion US Medical Aesthetics segent gross argin for the first quarter of was percent copared to percent in the prior year quarter International Brands Three Months Ended March, Change Unaudited; in illions Dollars Eye care n Facial Aesthetics n Other Therapeutics n Plastic Surgery n Net revenues n Operating expenses: Cost of sales n Selling and arketing n General and adinistrative n Segent contribution n Segent argin Segent gross argin Excludes aortization and ipairent of acquired intangibles including product rights, as well as indirect cost of sales not attributable to segent results International Brands net revenues for the first quarter of was illioncopared to illion in the first quarter of Growth was ainly attributed to revenues associated with acquired legacy Allergan products, including Botox, Juveder and Ozurdex International Brands selling and arketing S&M expenses for the first quarter of were illion, and general & adinistrative expense G&A were illion International Brands segent gross argin for the first quarter of was percent copared to percent in the prior year quarter Anda Distribution Three Months Ended March, Change Unaudited; in illions Dollars Net revenues Operating expenses: Cost of sales Selling and arketing General and adinistrative Segent contribution irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

8 // News Allergan Segent argin Segent gross argin Excludes aortization and ipairent of acquired intangibles including product rights, as well as indirect cost of sales not attributable to segent results Anda Distribution net revenues for the first quarter of were illion, reflecting a illion decline priarily due to the loss of Target Corporation business due to CVS Health acquiring Target's in store pharacies Anda Distribution gross argin for the first quarter of was percent copared to percent in the previous year period Discontinued Operations As a result of the proposed divestiture of Allergan's Global Generics business to Teva on July,, the financial results of the Copany's Global Generics business are being reported as discontinued operations in the condensed consolidated stateents of operations These portions of the Copany's results will continue to be reported as discontinued operations until the close of that transaction Continuing operations includes the US Brands, US Medical, International Brands and Anda Distribution segents All prior year results have been recast to reflect continuing operations results Pipeline Update R&D productivity continued during the quarter Key developent highlights included: First Quarter US and International Branded Product Approvals and Launches ACZONE dapsone Gel,, received US Food and Drug AdinistrationFDA approval for the topical treatent for acne in patients years of age and older BOTOX onabotulinutoxina received FDA approval for the treatent of lower lib spasticity in adult patients to decrease the severity of increased uscle stiffness in ankle and toe uscles DALVANCE dalbavancin for injection received FDA approval for its suppleental New Drug Application snda and EU approval to expand the product's label The expanded label includes a singledose adinistered as a inute intravenous IV infusion of DALVANCE for the treatent of acute bacterial skin and skin structure infections ABSSSI caused by designated susceptible Gra positive bacteria in adults, including infections caused by ethicillin resistant Staphylococcus aureus MRSA Allergan launched VRAYLAR cariprazine, a once daily oral atypical antipsychotic in the US VRAYLAR was approved by the FDA in Septeber for the treatent of acute anic or ixed episodes of bipolar I disorder and schizophrenia in adults First Quarter Regulatory Milestones & Clinical Updates Allergan announced that rapastinel GLYX received Breakthrough Therapy designation fro the FDA for adjunctive treatent of Major Depressive Disorder MDD This follows the Fast Track Designation for rapastinel granted by the FDA in Allergan announced that the FDA accepted for filing the copany's suppleental New Drug Application snda for TEFLARO ceftaroline fosail If approved, this filing will expand the label of TEFLARO beyond adults to include the treatent of children two onths of age and older with acute bacterial skin and skin structure infections ABSSSI including infections caused by ethicillin resistant Staphylococcus aureus MRSA and counity acquired bacterial pneuonia CABP caused by Staphylococcus pneuoniae and other designated susceptible bacteria Allergan announced that the FDA accepted for filing the copany's suppleental New Drug Application snda for AVYCAZ ceftazidie and avibacta This filing will add iportant new clinical data to the irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

9 // News Allergan current label fro two Phase trials evaluating the safety and efficacy of AVYCAZ, in cobination with etronidazole, for the treatent of coplicated intra abdoinal infections ciai, including patients with infections due to ceftazidie nonsusceptible CAZ NS pathogens Allergan has subitted an NDA to the FDA for Oxyetazoline, a potential treatent for rosacea Allergan subitted an snda to the FDA for Linzess cg for the treatent of Chronic Idiopathic Constipation CIC Allergan subitted an snda to the FDA for a single inserter with optiized packaging for use with Liletta FDA accepted an NDA subission for SER, an investigational treatent for nocturia Top line results fro the first Phase study of Ulipristal Acetate were reported in the first half of The study et all co priary and secondary endpoints with both ulipristal treatent ars achieving statistically significant results over placebo p< Allergan initiated a Phase study for Cariprazine in Bipolar Depression in the first half of Full Year Continuing Operations Guidance Allergan's full year continuing operations standalone estiates are based on anageent's current belief about prescription trends, pricing levels, inventory levels and the anticipated tiing of future product launches and events Continuing operations includes the US Brands, US Medical, International Brands and Anda distribution segents Total Non GAAP Net Revenues are expected to be ~ Billion Non GAAP Branded Net Revenues are expected to be ~ Billion Growth No aterial changes to gross argin fro current levels in each segent Non GAAP R&D investent is expected to be ~ Billion SG&A as a percent of non GAAP Net Revenues is expected to be ~ reflecting plans to restructure and siplify the business following the divestiture of the Global Generics business to Teva Non GAAP tax rate anticipated to return to noralized levels following the close of Teva of ~ Excluding Naenda IR, divestitures and Anda Share Repurchase Progra Allergan today announced that the Copany's board of directors has authorized a new share repurchase progra of up to billion of the Copany's coon stock Allergan expects to execute billion in open arket repurchases over four to six onths subject to favorable arket conditions If favorable arket conditions persist, the Copany will consider extending the progra following copletion of the initial portion of the share repurchase progra The share repurchase progra is pending the copletion of and receipt of proceeds fro the divestiture of Allergan's Global Generics business to Teva, expected to close by the end of June First Quarter Conference Call and Webcast Details Allergan will host a conference call and webcast today at : a Eastern Tieto discuss first quarter results The dial in nuber to access the call is US/Canada, International, and the conference ID is To access the live webcast, go to Allergan's Investor Relations Web site at A taped replay of the conference call will also be available beginning approxiately two hours after the call's conclusion and will reain available through : PM Eastern Tie on May, The replay ay be accessed by dialing and entering conference ID Fro international locations, the replay ay be accessed by dialing and entering the sae irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

10 // News Allergan conference ID To access the webcast, go to Allergan'sInvestor Relations Web site at A replay of the webcast will also be available About Allergan Allergan plc NYSE: AGN, headquartered in Dublin, Ireland, is a unique, global pharaceutical copany and a leader in a new industry odel Growth Phara Allergan is focused on developing, anufacturing and coercializing innovative branded pharaceuticals, high quality generic and over the counter edicines and biologic products for patients around the world Allergan arkets a portfolio of best in class products that provide valuable treatents for the central nervous syste, eye care, edical aesthetics, gastroenterology, woen's health, urology, cardiovascular and anti infective therapeutic categories, and operates the world's third largest global generics business, providing patients around the globe with increased access to affordable, highquality edicines Allergan is an industry leader in research and developent, with one of the broadest developent pipelines in the pharaceutical industry and a leading position in the subission of generic product applications globally With coercial operations in approxiately countries, Allergan is coitted to working with physicians, healthcare providers and patients to deliver innovative and eaningful treatents that help people around the world live longer, healthier lives For ore inforation, visit Allergan's website at wwwallerganco Forward Looking Stateent Stateents contained in this press release that refer to future events or other non historical facts are forward looking stateents that reflect Allergan'scurrent perspective of existing trends and inforation as of the date of this release Except as expressly required by law, Allergan disclais any intent or obligation to update these forward looking stateents Actual results ay differ aterially fro Allergan's current expectations depending upon a nuber of factors affecting Allergan's business These factors include, aong others, the difficulty of predicting the tiing or outcoe of FDA approvals or actions, if any; the ipact of copetitive products and pricing; arket acceptance of and continued deand for Allergan's products; difficulties or delays in anufacturing; and other risks and uncertainties detailed in Allergan's periodic public filings with the Securities and Exchange Coission, including but not liited to Allergan's Annual Report on For K for the year ended Deceber, Except as expressly required by law, Allergan disclais any intent or obligation to update these forward looking stateents Non GAAP Financial Measures This docuent contains non GAAP financial easures The Appendix hereto presents reconciliations of certain non GAAP financial easures to the ost directly coparable GAAP easures The non GAAP easures include non GAAP net incoe, non GAAP earnings per share, adjusted EBITDA, adjusted gross argin as a percentage of adjusted net revenues, adjusted SG&A as a percentage of adjusted net revenues and adjusted R&D expense irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

11 // News Allergan We believe these non GAAP easures provide useful inforation to investors because these are aong the easures used by our anageent tea to evaluate our operating perforance and to ake day to day operating decisions We believe this presentation also increases coparability of period to period results We also consider pro fora capital ratios defined by banking regulators but not effective at each period end to be non GAAP financial easures Since analysts and banking regulators ay assess our capital adequacy using these pro fora ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the sae basis Other copanies ay use siilarly titled non GAAP financial easures that are calculated differently fro the way we calculate such easures Accordingly, our non GAAP financial easures ay not be coparable to siilar non easures Accordingly, non easures used by other copanies We caution investors not to place undue reliance on such non GAAP easures, but instead to consider the with the ost directly coparable GAAP easure Non GAAP financial easures have liitations as analytical tools and should not be considered in isolation, or as a substitute for our results as reported under GAAP The following table presents Allergan plc's GAAP to Non GAAP stateent of operations for the three onths ended March, and : Table ALLERGAN PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS TO NON GAAP STATEMENT OF OPERATIONS Unaudited; in illions, except per share aounts Three Months Ended Three Months Ended March, March, Non Adju Adjust GAA ste Non GAAP ents P GAAP nts GAAP,,,, Net revenues Operating expenses: Cost of sales excludes aortization and ipairent, of acquired intangibles including product rights irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

12 // News Allergan Research and developent,,, Selling, general and adinistrative,, Aortization In process research and developent ipairents Asset sales and ipairents, net,,,,,, Total operating expenses,,,, Operating loss / incoe Non operating incoe expense: Interest incoe Interest expense Other incoe expense, net Total other incoe expense, net Loss / incoe before incoe taxes and noncontrolling,,,, interest Benefit / provision for incoe taxes,,, Net loss / incoe fro continuing operations, net of tax Incoe / loss fro discontinued operations Net incoe / loss,,, irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

13 // News Allergan Incoe / loss attributable to noncontrolling interest,,, Net incoe / loss attributable to shareholders Dividends on preferred shares,,, Net incoe / loss attributable to ordinary shareholders Loss / incoe per share attributable to ordinary shareholders basic: Continuing operations Discontinued operations Net incoe / loss per share basic Loss / incoe per share attributable to ordinary shareholders diluted: Continuing operations Discontinued operations Net incoe / loss per share diluted Weighted average shares outstanding: Basic Diluted Footnotes to the stateent Cost of sales excludes aortization and ipairent of acquired intangibles including product rights Aount in cost of sales in the quarter ended March, includes aortization of the Forest, Allergan and Durata related inventory step ups of illion as the inventory acquired in each acquisition was sold to the Copany's third party custoers Also included in cost of sales for the quarter ended March, was the purchase accounting ipact on stock based copensation associated with the Allergan, Kythera and Forest acquisitions of illion, restructuring charges and expenses associated with the fair arket value adjustents and accretion of contingent consideration obligations of illion Research and developent Research and developent costs in the quarter ended March,, priarily included an upfront license fee of approxiately illion associated with the agreeent with Anterios Also included in the quarter ended March, was the purchase accounting ipact on stock based copensation associated with the Allergan, Kythera and Forest acquisitions of illion and expenses associated with the fair arket value adjustents and accretion of contingent irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

14 // News Allergan consideration obligations of illion Selling, general and adinistrative Selling and arketing costs in the quarter ended March,, priarily included fees associated with the terinated Pfizer transaction of illion and the purchase accounting ipact on stock based copensation associated with the Allergan, Kythera and Forest acquisitions of illion General and adinistrative costs in the quarter ended March, priarily included fees associated with the terinated Pfizer transaction of illion, integration costs of illion priarily associated with the integration of Legacy Allergan, the purchase accounting ipact on stock based copensation associated with the Allergan, Kythera and Forest acquisitions of illion, litigation charges of illion, and the reversal of ark to arket unrealized gains / losses associated with foreign currency options exercisable in future periods Aortization Includes aortization of acquired intangibles including product rights In process research and developent "IPR&D" ipairents and asset sales and ipairents, net Ipairents, net in the quarter ended March, relate to a reduction in cash flows for Woen's Healthcare portfolio products acquired in the Warner Chilcott Acquisition and offset by other iscellaneous asset sales during the period Interest expense Aount in interest expense includes the aortization of the fair value step up of senior secured notes assued as part of the Forest and Allergan acquisitions Provision for incoe taxes In addition to the incoe tax ipact on the ites above, the provision for incoe taxes included the ipact of select discrete ites Incoe / loss fro discontinued operations The Copany excludes earnings fro discontinued operations in coputing adjusted earnings Dividends on preferred shares The dividend ipact is excluded fro dilutive EPS as the Copany is assuing the "if converted" ethod of preferred shares Cost of sales excludes aortization and ipairent of acquired intangibles including product rights Aount in cost of sales in the three onths ended March, included aortization of the Allergan, Forest, Durata and Warner Chilcott related inventory step ups of illion as the inventory acquired in each acquisition was sold to the Copany's third party custoers Cost of sales in the three onths ended March, includes the expensing of inventory, inclusive of the purchase accounting step up, related to unsalable inventory resulting fro the sale of the Copany's respiratory products of illion Also included in cost of sales for the three onths ended March, was integration and restructuring costs priarily related to the Allergan and Forest acquisitions of illion, the purchase accounting ipact on stock based copensation associated with the Allergan and Forest acquisitions of illion, and expenses associated with the fair arket value adjustents and accretion of contingent consideration obligations of illion Research and developent Aounts in research and developent costs in the quarter ended March,, priarily included severance and severance related costs incurred in connection with the Allergan acquisition of illion, severance and severance related costs incurred in connection with the Forest acquisition of illion, the purchase accounting ipact on stockbased copensation associated with the Allergan and Forest acquisitions of illion and ilestone payents associated with select R&D projects of illion Selling, general and adinistrative Selling and arketing costs in the quarter ended March,, priarily included severance and severance related costs incurred in connection with the Allergan acquisition of illion, severance and severance related costs incurred in connection with the Forest acquisition of illion and the purchase accounting ipact on stock based copensation associated with the Allergan and Forest acquisitions of illion General and adinistrative costs in the quarter ended March, priarily included erger success and related acquisition fees associated with the Allergan acquisition of illion, the foreign exchange ipact on contingent consideration obligations of illion, severance and severance irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

15 // News Allergan related costs incurred in connection with the Allergan acquisition of illion, severance and severance related costs incurred in connection with the Forest acquisition and the purchase accounting ipact on stock based copensation associated with the Allergan and Forest acquisitions of illion In process research and developent "IPR&D" ipairents and asset sales and ipairents, net IPR&D ipairents and asset sales and ipairents, net, in the quarter ended March,, priarily relate to iscellaneous assets sales during the quarter Interest expense Aount in interest expense includes the aortization of the fair value step up of senior secured notes assued as part of the Forest and Allergan acquisitions Other incoe expense, net Aount in Other incoe expense, net in the three onths ended March, includes the aortization of bridge loan coitent fees incurred in connection with the Allergan acquisition of illion, a gain on an interest rate lock entered into in connection with the Allergan acquisition of illion and a gain on the sale of the respiratory business of illion The following table presents Allergan plc's Condensed Consolidated Balance Sheets as of March, and Deceber, Table ALLERGAN PLC CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited; in illions March, Deceber, Assets Cash and cash equivalents,, Marketable securities Accounts receivable, net,, Inventories,, Other current assets Assets held for sale,, Property, plant and equipent, net,, Investents and other assets Product rights and other intangibles, net,, Goodwill,, Total assets,, Liabilities & Equity Current liabilities,, Liabilities held for sale,, Current and long ter debt and capital leases,, Deferred incoe taxes and other liabilities,, Total equity,, irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

16 // News Allergan Total liabilities and equity,, The following table presents Allergan plc's Condensed Consolidated Stateents of Cash Flows for the three onths ended March, and Table ALLERGAN PLC CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited; in illions Three Months Ended March, Cash Flows Fro Operating Activities: Net incoe / loss Reconciliation to net cash provided by operating activities: Depreciation Aortization, Provision for inventory reserve Share based copensation Deferred incoe tax benefit In process research and developent ipairents Gain / loss on asset sales and ipairents, net Aortization of inventory step up Aortization of deferred financing costs Contingent consideration adjustents, including accretion Excess tax benefit fro stock based copensation Other, net Changes in assets and liabilities net of effects of acquisitions: Decrease / increase in accounts receivable, net Decrease / increase in inventories Decrease / increase in prepaid expenses and other current assets Increase / decrease in accounts payable and accrued expenses Increase / decrease in incoe and other taxes payable Increase / decrease in other assets and liabilities Net cash provided by operating activities, Cash Flows Fro Investing Activities: Additions to property, plant and equipent Additions to product rights and other intangibles Additions to investents Proceeds fro sale of investents and other assets Proceeds fro sales of property, plant and equipent Acquisitions of businesses, net of cash acquired, Net cash used in investing activities, Cash Flows Fro Financing Activities: Proceeds fro borrowings of long ter indebtedness, Proceeds fro borrowings on credit facility and other, irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

17 // News Allergan Debt issuance and other financing costs Payents on debt, including capital lease obligations, Proceeds fro issuance of preferred shares, Proceeds fro issuance of ordinary shares, Proceeds fro stock plans Payents of contingent consideration Repurchase of ordinary shares Dividends Excess tax benefit fro stock based copensation Net cash used in / provided by financing activities, Effect of currency exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents,, Cash and cash equivalents at beginning of period, Cash and cash equivalents at end of period,, The following table presents a reconciliation of Allergan plc's reported net loss fro continuing operations attributable to shareholders and diluted earnings per share to non GAAP net incoe and diluted earnings per share for the three onths ended March, and : Table ALLERGAN PLC RECONCILIATION TABLE Unaudited; in illions except per share aounts Three Months Ended March, GAAP to non GAAP net incoe calculation GAAP loss fro continuing operations attributable to shareholders Adjusted for: Aortization, Acquisition and licensing charges, Accretion on contingent liabilities Ipairent/asset sales and related costs Non recurring losses gains Legal settleents Incoe taxes on ites above Non GAAP net incoe attributable to shareholders, Diluted earnings per share Diluted loss per share fro continuing operations attributable to shareholders GAAP irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

18 // News Allergan Diluted earnings per share attributable to shareholders NON GAAP Basic weighted average ordinary shares outstanding Effect of dilutive securities: Dilutive shares Diluted weighted average ordinary shares outstanding Includes stock based copensation due to the Allergan, Forest and Warner Chilcott acquisitions as well as the valuation accounting ipact in interest expense, net The following table presents a reconciliation of Allergan plc's reported net loss fro continuing operations attributable to shareholders for the three onths ended March, and to adjusted EBITDA: Table ALLERGAN PLC ADJUSTED EBITDA, RECONCILIATION TABLE Unaudited; in illions Three Months Ended March, GAAP loss fro continuing operations attributable to shareholders Plus: Interest expense Interest incoe Benefit for incoe taxes Depreciation includes accelerated depreciation Aortization, EBITDA, Adjusted for: Acquisition and licensing and other charges Ipairent/asset sales and related costs Non recurring losses gains irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

19 // News Allergan Legal settleents Accretion on contingent liabilities Share based copensation Adjusted EBITDA,, The following tables present a reconciliation of Allergan plc's reported net revenues, cost of sales and SG&A for the three onths ended March, and to adjusted net revenues, adjusted cost of sales, adjusted gross profit, adjusted gross profit as a percentage of adjusted net revenues, adjusted SG&A and adjusted SG&A as a percentage of adjusted net revenues: Table ALLERGAN PLC ADJUSTED GROSS MARGIN AND ADJUSTED SG&A AS A PERCENTAGE OF ADJUSTED NET REVENUES Unaudited; in illions Three Months Ended March, Net Revenues: Net revenues,, Adjustents to net revenue reove fro / add to Incoe related to divested assets and other Adjusted net revenues,, Cost of Sales : Cost of Sales, Adjustents to cost of sales reove fro / add to Integration, restructuring and other Contingent consideration fair value and accretion adjustent Acquisition accounting fair arket value adjustent to stock based copensation Purchase accounting adjustents Adjusted cost of sales Adjusted gross profit,, Adjusted gross profit as a percentage of adjusted net revenues SG&A: irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

20 // News Allergan SG&A,, Adjustents to SG&A reove fro / add to Legal atters Acquisition, integration, restructuring and other expenses Mark to arket adjustents Acquisition related costs Acquisition accounting fair arket value adjustent to stock based copensation Adjusted SG&A, Adjusted SG&A as a percentage of adjusted net revenues Cost of sales excludes aortization and ipairent of acquired intangibles The following table presents a reconciliation of Allergan plc's expected GAAP Research & Developent expense to adjusted Research & Developent expense for the three onths ended March, and, respectively: Table ALLERGAN PLC ADJUSTED R&D EXPENSE Unaudited; in illions Three Months Ended March, Research and Developent expense Adjustents to research and developent reove fro / add to Contingent consideration fair value adjustents adjustents and accretion Brand related ilestone payents and upfront license payents Acquisition, integration & restructuring expenses Acquisition accounting fair arket value adjustent to stock based copensation Adjusted research and developent expense CONTACTS: Allergan: Investors: Lisa DeFrancesco Media: irnet/phoenixzhtl?c=&p=irol newsarticle&id= /

21 // News Allergan Mark Marur To view the original version on PR Newswire, visit: releases/allergan reports strong first quarter continuing operations perforance with increase in net revenue to billion and growth in non gaap diluted eps to htl SOURCE Allergan plc irnet/phoenixzhtl?c=&p=irol newsarticle&id= /