By Tess Stynes
Allergan Inc.'s (AGN) fourth-quarter earnings rose 16% as the
botox-maker reported growing revenue and fewer one-time
charges.
For the year, the company projected per-share earnings of $4.75
to $4.83, slightly above recent estimates of analysts polled by
Thomson Reuters for $4.74.
However, for the current quarter, Allergan forecast per-share
earnings of 94 cents to 96 cents, below analysts' recent estimates
for $1.03.
The company has been aiming to expand its business beyond its
core product line of beauty drugs, including the skin-tightening
Botox, lip-enhancers and breast implants.
Allergan recently agreed to a $958 million deal for MAP
Pharmaceuticals Inc. (MAPP), whose Levadex migraine headache
therapy faces a crucial approval decision by the U.S. Food and Drug
Administration in April. The deal is expected to increase its
presence in the migraine area, where Allergan currently offers
botox to prevent migraines, which received FDA approval in 2010.
The company in November agreed to buy SkinMedica Inc.'s
topical-aesthetics skin-care business for $350 million. The
company's main prescription product is Vaniqa to reduce unwanted
facial hair in women.
Meanwhile, Allergen has been trying to shed its weight-loss
surgery business, which includes the Lap-Band and has seen sales
decline in recent years.
Chairman and Chief Executive David Pyott said, ""In 2013, we
look forward to making a notable increase in R&D investment, to
secure several regulatory approvals and to growing our
markets."
Allergan reported a profit of $324.2 million, or $1.06 a share,
up from $279.8 million, or 90 cents a share, a year earlier.
Excluding acquisition-related charges, asset write-downs and other
items, adjusted earnings were up at $1.15 from $1. Revenue
increased 7.6% to $1.51 billion.
The company in October forecast per-share earnings of $1.18 to
$1.20 on revenue of $1.47 billion to $1.55 billion.
Sales of Botox, which is used as a medical treatment and
wrinkle-fighting cosmetic tool, rose 14% to $474.6 million.
Specialty pharmaceutical sales--which make up the bulk of
Allergan's revenue--rose 9%, excluding currency fluctuations.
Shares closed Monday at $105.07 and were inactive premarket. The
stock is up 15% this year.
Write to Tess Stynes at tess.stynes@dowjones.com
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