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;
Tess.Stynes@dowjones.com