, the company that makes the wrinkle treatment Botox, said its earnings took a hit from rising expenses during the latest quarter, but adjusted profits still managed to beat Wall Street's estimates.
The company earned $106.4 million, or 70 cents a share, in the third quarter, down from $150.5 million, or $1.12 a share, a year ago. The most recent quarter includes expenses related to the acquisition of breast-implant manufacturer Inamed earlier this year.
Excluding charges, Allergan earned 95 cents a share, a penny above analysts' estimates.
Allergan's revenue reached $806.8 million in the third quarter, with product sales coming in at $791.7 million, including $116.3 million from Inamed. The company's Botox and neuromodulator segment had sales of $237.7 million, up from $214.8 million a year ago. Eye-care pharmaceuticals brought in $403.4 million, up from $358.1 million the previous year. Analysts were expecting the company to report revenue of $784.2 million.
For all of 2006, Allergan expects to report sales of between $2.98 billion and $3.02 billion, excluding revenue from the former Inamed products. Allergan previously expected to report full-year product sales of between $2.87 billion and $3.01 billion.
Allergan reduced its full-year expectations for breast-aesthetics product sales to between $180 million and $190 million from its March guidance of $180 million to $200 million. Allergan also decreased its sales estimate for its eye drug Restasis to between $265 million and $275 million from its previous guidance of between $280 million and $300 million.
Shares fell $3.06, or 2.7%, to $112.44.
Separately, Allergan agreed to acquire the French aesthetic and ophthalmic surgery company
Groupe Corneal Laboratoires
for approximately 170 million euros.
The deal is expected to close in the first quarter of 2007. Allergan plans to separate the company's two segments and divest the ophthalmic division.
Acquiring Groupe Corneal's aesthetic division will expand Allergan's marketing rights for the dermal filler product Juvederm as well as a range of fillers, from the U.S., Canada and Australia to include all countries worldwide. Allergan will also gain control of all manufacturing, future development and intellectual property related to Juvederm.