DOW JONES NEWSWIRES
Allergan Inc.'s (AGN) second-quarter profit rose 23% on declines
in overhead and research costs, but currency changes ate into
revenue at the eye and skin-care products company.
While the quarter's results topped analysts' estimates and the
maker of Botox and the nation's largest seller of medical products
for appearance-enhancement treatments raised the lower end of its
2009 outlook, it forecast weaker-than-expected earnings this
quarter.
Allergan sees income of 67 cents to 69 cents a share, on product
sales of $1.05 billion to $1.1 billion. Analysts surveyed by
Thomson Reuters projected earnings of 72 cents and total revenue of
$1.07 billion.
Makers of aesthetic medical treatments are feeling pressure from
the slumping economy as customers trim cosmetic procedures from
their budgets. Allergen has cut 5% of its work force, mainly
targeting its U.S. urology sales force and marketing staff in the
U.S. and Europe.
Allergan said second-quarter earnings rose to $176.1 million, or
58 cents a share, from $143.4 million, or 47 cents a share, a year
earlier. Excluding acquisition and other impacts, profit rose to 75
cents from 63 cents.
Product net sales fell 3.2% to $1.12 billion, but rose 2.2% in
constant currencies.
In May, Allergan forecast earnings, excluding items, of 66 cents
to 68 cents on product sales of $1.05 billion to $1.1 billion.
Profit in the latest quarter rose thanks to a 13% drop in
overhead costs and a 24% decline for research and development.
Pharmaceutical sales were down 0.6%, but rose 4.8% excluding
currency changes, while a 14% drop in medical-device revenue was
8.5% on an adjusted basis.
Botox sales fell 3.2% on foreign-exchange impacts.
Allergan shares were up 20 cents at $52.75 in recent trading.
The stock is up just 31% this year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com