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Allergan Profit Tumbles on Lower Botox Sales

Jeanine Poggi

Shriveling demand of Botox injections sent Allergan's(AGN Quote) first-quarter profit tumbling 59%.

During the quarter, the company earned $44.7 million, or 15 cents a share, compared with $107.7 million, or 35 cents a share, in the year-ago period.

Results include restructuring charges of 40 cents that will reduce the company's workforce by 5%. Excluding the charges, the company beat analyst estimates of 53 cents a share.

Revenue declined 6% to $1.01 billion from $1.08 billion last year. Sales of its signature product Botox were down 18%, as the economic downturn has prompted consumers to cut back on the wrinkle treatment, as well as breast implants.

An FDA warning and tougher competition could also hurt Allergan going forward.

On Thursday the FDA warned doctors and patients about the potential deadly risks of receiving Botox. The agency said it and two other injections have been linked to rare botulism symptoms, particularly when given to children to help relax uncontrollable muscle movements.

The same day, Medicis Pharmaceutical (MRX Quote) and Ipsen received approval for a similar product, Dysport, which is approved as a wrinkle treatment and to treat a condition that causes neck pain.

Looking ahead, Allergan reaffirmed its full-year profit outlook in the range of $2.69 to $2.75 a share. For the second-quarter, the company expects profit between 66 cents and 68 cents a share.

Shares of Allergan were down 4% to $44.81 in afternoon trading.