Allergan guides for mid-single-digit revenue growth in 2017

Allergan on Thursday revealed that it expects "mid-single-digit" revenue growth this year, led by new product launches, international growth and the performance of key products. The drugmaker added that growth of earnings per share in 2017 is estimated to be in the double digits. 

CEO Brent Saunders said "we look forward to strong execution in 2017 to drive stronger shareholder return in the short- and long-term," adding "our team remains focused on driving our growth trajectory and we are very excited for the tremendous opportunities ahead."

Allergan specified that earnings growth will be bolstered by "net revenue growth, operating expense management and previously announced capital deployment actions." In particular, the drugmaker anticipates that net revenue growth will continue to outpace the growth of R&D spending and general administrative expenses. 

Regarding specific products, Allergan noted that sales of the chronic eye disease therapy Restasis (cyclosporine) will remain stable in the current year. Meanwhile, declining sales of the Alzheimer's disease drug Namenda XR (memantine) due to the anticipated launch of a generic competitor in the final quarter of the year are expected to be partially offset by solid performance for Namzaric (memantine/donepezil).

Allergan said it anticipates lower interest expenses due to its continued repayment of debt and reduction in share count following its previously announced share repurchase programme. However, the company cautioned that the reduction in interest expenses will be partially cancelled by the normalisation of its tax rate this year after the divestiture of its global generics business to Teva.