Allergan plc (NYSE:AGN) Q3 2017 Earnings Conference Call Transcript

Nov 01, 2017 • 08:30 am ET


Allergan plc (NYSE:AGN) Q3 2017 Earnings Conference Call Transcript


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Good morning. My name is Brandy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2017 Allergan earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions) Thank you.

I would now turn the call over to Ms. Daphne Karydas, VP of IR and Strategy, to begin.

Daphne Karydas

Thank you, Brandy, and good morning, everyone. I'd like to welcome you to the Allergan Third Quarter 2017 Earnings Conference Call. Earlier this morning, we issued a press release reporting Allergan earnings from continuing operations for the quarter ended September 30, 2017. The press release and our slide deck which we are presenting this morning are available on our corporate website at We are conducting a live webcast of this call, a replay of which will be available on our website after its conclusion. Please note that today's call is copyrighted material of Allergan and cannot be rebroadcast without the Company's express written consent.

(Forward-Looking Cautionary Statements) Turning to slide 3 and our agenda this morning. With us on today's call are Brent Saunders, our Chairman and CEO, who will provide some thoughts on our business and highlights from our third quarter results; Bill Meury, our Chief Commercial Officer, who will provide an overview of our commercial performance; David Nicholson, our Chief R&D Officer, who will provide an update on our pipeline; and Tessa Hilado, our CFO, who will then discuss the Allergan third quarter financial results and our guidance in more detail. Also on the call and available during the Q&A are Rob Stewart, our COO, and Bob Bailey, our Chief Legal Officer.

With that, I will turn the call over to Brent.

Brent Saunders

Thank you, Daphne, and good morning, everyone. A great deal has happened over the past few months, and we have a lot to cover on today's call. I want to make sure that we have time to address everyone's questions, so let's get started with three key points. First, our results and full year 2017 outlook are solid. Revenue growth, non-GAAP performance net income per share growth, and cash flow generation were all strong this quarter. The pipeline is moving forward, and our team is very focused on execution.

Second, we are facing some loss-of-exclusivity challenges, just like any biopharma company in our space. Those challenges are manageable, and we will deal with them head-on. We know how to take costs out of our Company while maintaining the right level of investment to drive future growth. We've done this before. Finally, this business will generate significant cash flow even if we were to lose RESTASIS, and we will deploy that cash flow to create value for our shareholders.

Now, before we turn to the quarterly results, let me address the question that is on everyone's mind: How will we mitigate the financial impact of RESTASIS loss of exclusivity following the unfavorable District