Allergan Inc.'s (AGN) first-quarter earnings rose 45% as the maker of Botox and medical devices reported double-digit sales growth at its specialty pharmaceuticals business.
The company projected second-quarter results below analysts' expectations, with earnings of $1.04 to $1.06 a share on revenue of $1.45 billion to $1.5 billion. Analysts polled by Thomson Reuters most recently expected $1.08 and $1.51 billion, respectively.
Allergan has seen its revenue grow for more than two years, aided by surging sales of the wrinkle-fighting drug Botox, which has also won approval to treat various medical issues. The company continues to seek approvals for new uses of its best-selling drug, such as the treatment of overactive bladder and osteoporosis.
Like many pharmaceutical companies, Allergan has been expanding its pipeline lately, such as its acquisition of Vicept Therapeutics Inc.--the developer of a cream to treat rosacea--and a deal with Map Pharmaceuticals Inc. (MAPP) to jointly promote Map's experimental migraine treatment Levadex.
Specialty pharmaceutical sales--which make up the bulk of Allergan's revenue--were up nearly 11%, and roughly 12% excluding currency fluctuations. Botox sales were up 9.4% and eye-care pharmaceuticals sales grew 10%.
Its medical devices segment--which includes breast implants and the Lap-Band System for obesity--reported sales edged up 0.8%, or 2% excluding currency impacts.
Allergan reported a profit of $229.8 million, or 74 cents a share, up from $158.3 million, or 51 cents a share, a year earlier. Excluding acquisition and restructuring charges and other items, earnings were up at 86 cents from 77 cents.
Revenue increased 9.5% to $1.39 billion. Allergan in February expected earnings of 84 cents to 86 cents a share on revenue of $1.34 billion to $1.39 billion.
Operating margin rose to 25.5% from 19.5%.
Shares of Allergan, which backed its 2012 guidance, closed Tuesday at $96.39 and were inactive premarket. Through Tuesday's close, the stock is up 9.9% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [email protected]