Allergan Hit by Inamed Costs

The company reports slightly better-than-expected adjusted earnings, excluding the acquisition effect.
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Specialty pharmaceutical company


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reported better-than-expected adjusted earnings in the first quarter Wednesday, but sales fell slightly below analysts' estimates.

Allergan reported a loss of $3.29 a share, which included the effects of its purchase of breast-implant maker Inamed and 5 cents a share of stock-option expenses. Excluding charges related to the acquisition, which was completed March 23, Allergan earned 82 cents a share, a penny ahead of analysts' consensus estimate.

First-quarter sales excluding Inamed products were $615.2 million, just short of the $616.5 million expected by analysts surveyed by Thomson First Call. Pharmaceutical sales were $361.9 million.

Looking at the second quarter, Allergan expects to bring in sales, including Inamed's results, of $750 million to $770 million. Earnings should be 82 cents to 84 cents a share, including a 5-cent stock-options expense.

"I am extremely pleased with the very strong sales growth across a broad range of products, regions and businesses in the first quarter," said David Pyott, Allergan's chairman and CEO. "Furthermore, we are making excellent progress in integrating Inamed's operations and are successfully establishing ourselves as the leading specialist company in medical aesthetics, providing a wide range of innovative products to plastic surgeons and dermatologists."

Allergan increased its full-year guidance to between $3.57 and $3.63 a share, including 20 cents of stock-options costs but factoring out certain other items.

The company expects its top line to reach between $2.8 billion and $3.0 billion for the year, with pharmaceutical sales around $2.5 billion. Allergan increased its expected sales of the wrinkle-zapping Botox injection to between $890 million and $925 million, excluding sales in Japan, which are handled through an agreement with


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Shares of Allergan were losing $4.19, or 4%, to $99.51.