Allergan (AGN) reported Tuesday that it met earnings expectations and beat on revenue in the third quarter.
The Irvine, Calif.-based company earned 50 cents a share from continuing operations vs. 35 cents a share in the year-ago quarter. On an adjusted basis, it reported 58 cents a share, or $179.9 million, vs. 47 cents a share, or $144.8 million, in the 2006 period.
Analysts surveyed by Thomson Financial were expecting 58 cents a share on revenue of $960 million, but Allergan reported revenue of $993.7 million, compared to $806.8 million in the year-ago period. Total product net sales increased 23.6%, or 20.9% at constant currency, compared to the third quarter of 2006. Specialty pharmaceutical sales increased 16%, and core medical devices net sales increased 66% from the 2006 period.
Within the specialty pharmaceutical sales category, Botox sales increased 24.8% to $296.7 million. Within the medical device category, breast aesthetics increased 84%, to $217.8 million, obesity intervention increased 110.9% to $195.9 million, and facial aesthetics increased 329.1% to $141.6 million.Looking ahead, the company updated its fourth-quarter and full-year guidance to reflect the $370 million acquisition of Esprit Pharma. Allergan expects between 56 cents and 57 cents a share in the fourth quarter and adjusted diluted earnings between $2.14 and $2.15 a share for the year, assuming a 4-cent per-share dilution from the Esprit acquisition. The Thomson Financial consensus target is for 57 cents a share in the fourth quarter and $2.15 for the year. Also on Tuesday, Stiefel Laboratories said it entered into an agreement with Allergan to develop and market new products involving Tazarotene worldwide for dermatological use and to co-promote Tazorac, for mild to severe facial acne, in the U.S. Financial terms weren't disclosed. Shares rose 33 cents, or 0.5%, to $67.36 in recent trading.