Allergan Reports Saggy Profit, Jobs Cuts

Updated from 4:39 p.m. EST

Drugmaker Allergan(AGN Quote) said Wednesday its profit dropped in the fourth quarter and that it would cut 460 jobs.

The Irvine, Calif., Botox maker said fourth-quarter profit fell to $150.6 million, or 50 cents per share, from $160.3 million, or 52 cents per share, in the fourth quarter of 2008.

Revenue fell 3% to $1.06 billion from $1.09 billion.

Eating into the company's bottom line this year were payments for licensing deals and a $13.2 million distribution settlement. Adjusted earnings were 76 cents per share. Analysts had expected earnings of 73 cents per share on $1.04 billion in revenue.

According to The Associated Press, Allergan said that spend-wary patients who use cash-cow drug Botox are waiting longer between wrinkle treatments and that the drug's other uses -- which include alleviating excessive sweating and treating certain kinds of neck pain, eyelid spasms and crossed eyes -- are susceptible to the economic slowdown.

Allergan also said it would cut 460 jobs, focusing primarily on U.S. urology sales and marketing employees and marketing staff in the U.S. and Europe. Those restructuring measures will smack the company with pretax charges of between $110 million and $117 million.

Allergan's net annual income for 2008 was $578.6 million, or $1.89 per share, on $4.34 billion in revenue.

Allergan shares, which closed up 1.2% to $40.28 in the regular session Wednesday, were rising 0.5% in extended trading.

Among the company's direct competitors, Alcon(ACL Quote) ended the day down 0.6% to $84.47, and Elan(ELN Quote) rose 2.7% to $8.05.