1 novembre, 2006 19:40
UPDATE 3-Botox maker Allergan quarterly net down
By Debra Sherman
CHICAGO, Nov 1 (Reuters) - U.S. Botox maker Allergan Inc. (AGN.N: Quote, Profile, Research) on Wednesday posted lower quarterly net earnings, hurt by slowing sales of breast implants, restructuring charges and expenses related to its $3.2 billion acquisition of breast implant maker Inamed Corp.
The company, which makes wrinkle fillers, anti-wrinkle treatments, gastric bands to treat obesity, and eye care products, said breast implant sales were $54.1 million, up 4 percent over a year ago, lower than analysts anticipated.
Allergan cut the top end of its forecast for 2006 breast implant sales to $180 million to $190 million from $180 million to $200 million.
Allergan executives told analysts during a conference call that many patients were deferring procedures as they await the return of silicone implants to the U.S. market.
Allergan and rival Mentor Corp. (MNT.N: Quote, Profile, Research) have been lobbying the U.S. Food and Drug Administration to lift the 1992 ban on silicone breast implants.
"If one looks back over long lengths of time, you can say this is a market that until 18 months ago was growing double-digit. So, you could ask yourself, you know, what changed materially that market that had done double-digit year after year, then slowed down....part of the explanation must be the so-called warehousing effect, people waiting for a better product," Chairman and Chief Executive David Pyott said.
"The modest Allergan growth does, however, represent a continued rebound for Allergan relative to its growth in recent quarters, but it does not speak well for the strength in the overall breast implant market," CIBC World Market analyst Amit Hazan wrote in a research note.
"Allergan lowered its 2006 breast implant sales guidance by $10 million. With only one quarter remaining, our assumption is that the lower guidance has to do with a capitulation that silicone breast implant approval will not be coming this year," he added.
The Irvine, California-based company said third-quarter net earnings were $106.4 million, or 70 cents per share, down from $150.5 million, or $1.12 per share, a year earlier.
The net income includes expenses related to stock-based compensation, restructuring costs and expenses related to its acquisition of breast implant maker Inamed. The two companies signed a merger agreement in December.
Before exceptional items, the company said it earned 95 cents per share. On that basis, the consensus estimate on Wall Street was 94 cents per share, according to Reuters Estimates.
Allergan said total product net sales were $791.7 million, which includes $116.3 million in product net sales acquired through the Inamed acquisition.
Allergan said the Inamed products, which are now part of the newly established Allergan Medical unit, have a greater sales potential than originally estimated.
The company, whose shares dipped $2.40 to $113.10 in early trading, raised its forecast for the full year, calling for product sales of $2.975 billion to $3.015 billion. On Aug. 2, it estimated sales to be $2.87 billion to $3.0 billion.
Allergan increased its adjusted diluted earnings per share outlook to $3.63 to $3.66, which includes 20 cents for the expensing of stock options.
The consensus estimate on Wall Street was for a 2006 profit, after exceptional items, of $3.65 per share, according to Reuters Estimates.
Shares were down $3.31 to $112.19 on the New York Stock Exchange in early afternoon trading.
