Allergan PLC (NYSE:AGN) plans to spend $10 billion on buy backs after seeing its $160 billion merger with Pfizer Inc. (NYSE:PFE) collapse last month. Going for share buybacks could be an indication that the Botox maker does not intend to pursue big deals, such as the $70.5 billion deal for Actavis last year.

Q1 Earnings

CEO Brent Saunders has also confirmed that a deal for the sale of the company’s generic business for $40.5 billion should close next month. The Dublin-based drug maker made the announcements after posting better than expected first quarter earnings.

Earnings per share of $3.04 topped analysts’ estimates of $3.01 a share as Allergan registered impressive sales on its wrinkle treatment Botox and eye drug Restasis.

Revenue for Botox and Restasis were up by 27.3% to highs of $2.30 billion in North America. US brands currently account for 60% of the company’s total revenue. Total revenue was up 48% to $3.80 billion against the street estimates of $3.95 billion.

The company has attributed the revenue miss to one time events such as the loss of the Target’s pharmacy business. The loss also affected the Anda distribution business, which supplies generic products, seen by sales dropping to $364.7 million from $554 million a year earlier.

Allergan Stance on Acquisitions

Saunders has already reiterated that they are not eyeing any acquisition now, focus having shifted to pursuing organic growth.

“When we look at the universe of things to buy, we don’t see anything that is a better investment than our own equity,” said Mr. Saunders.

The remarks essentially mean Allergan will focus most of its attention on managing its current portfolio of products. Striving to realize the potential of the current pipeline of promising drugs should be the primary goal.

The sentiments also end speculation that the company would use the $40 billion from the sale of the generics business to pursue acquisitions. Allergan has already confirmed that it will use $8 billion of the $40 billion to pay down its debt.