Allergan beats Street, to cut 13% of workforce

Allergan Inc. (NYSE:AGN) reported 2Q14 financial results on Monday that beat the Street but said the company will reduce headcount by about 1,500 (13%) to about 10,200. The cuts include about 700 R&D positions and about 250 positions from the company's sales force. Allergan said all R&D programs that are in the clinic will continue; however, the company cut earlier stage programs, including a preclinical acne program and Phase I programs in rosacea and glaucoma. The company will have about 1,450 R&D positions and 1,450 sales positions after the cuts. In addition to the staff cuts, Allergan said it will eliminate 250 vacant positions. The company said the cuts will generate pre-tax savings of about $475 million in 2015.

Allergan reported 2Q14 non-GAAP diluted EPS of $1.51, beating the Street's $1.44 estimate and up from $1.22 in 2Q13. Revenues in the quarter grew 16% to $1.83 billion, beating the Street's $1.77 billion estimate. The company said it now expects 2014 net sales of $6.9-$7.1 billion and non-GAAP diluted EPS of $5.74-$5.80. Previously, Allergan said it expected 2014 sales of $6.8-$7 billion and full-year EPS of $5.64-$5.73. ...