Allergan PLC (NYSE: AGN) is scheduled to report its second-quarter financial results Thursday before the markets open. The consensus estimates from Thomson Reuters call for $4.38 in earnings per share (EPS) on $5.71 billion in revenue. In the same period of the previous year it posted EPS of $3.42 and $2.64 billion in revenue.
The company recently made a huge splash when it sold its generics portfolio to Teva for a whopping $40.5 billion.
Allergan markets a portfolio of best-in-class products that provide valuable treatments for the central nervous system, eye care, medical aesthetics, gastroenterology, women’s health, urology, cardiovascular and anti-infective therapeutic categories, and it operates the world’s third-largest global generics business. Allergan is an industry leader in research and development, with one of the broadest development pipelines in the pharmaceutical industry and a leading position in the submission of generic product applications globally.
During this quarter, Allergan made moves to acquire Kythera Biopharmaceuticals Inc. (NASDAQ: KYTH), which will greatly help in rounding out its portfolio of facial aesthetics.
Both companies announced that they have entered into a definitive agreement in which Allergan will acquire Kythera in a cash and equity transaction valued at $75 per Kythera share, or roughly $2.1 billion.
The transaction will be payable 80% in cash and 20% in new Allergan shares issued to Kythera stockholders. The acquisition is expected to be breakeven in 2016 and accretive thereafter.
Despite this acquisition, Allergan’s 2015 earnings per share (EPS) forecast provided on May 11 is unchanged. Thomson Reuters has a consensus estimate for 2015 earnings, which calls for $17.85 per share.
JPMorgan is acting as the financial advisor for Allergan, and Goldman Sachs is serving as the financial advisor for Kythera.
ALSO READ: 3 Potential Huge Biotech Takeover Targets
Through this acquisition, Allergan is looking to strengthen its leading global position in aesthetics and continues to position it for long-term growth. Kybella will offer patients new options beyond the traditional facial aesthetics while complementing Allergan’s market leading facial aesthetics portfolio.
Shares of Allergan were up 0.9% to $333.88 Wednesday afternoon. The stock has a consensus analyst price target of $371.41 and a 52-week trading range of $201.91 to $340.34.
Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.
Here’s how it works:
1️ Answer a Few Simple Questions
Tell us a bit about your goals and preferences—it only takes a few minutes!
2️ Get Your Top Advisor Matches
This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.
3️ Choose Your Best Fit
Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.