Allergan Inc. reported a 21% jump in third-quarter net income Monday on higher sales of the company's anti-wrinkle drug, Botox.
The Irvine-based company had net income of $92 million, or 70 cents a share, compared with $76 million, or 57 cents, in the same quarter last year.
Excluding one-time items, Allergan earned $89 million, or 67 cents a share, compared with $75.9 million, or 57 cents, a year earlier. On that basis, Wall Street had expected net income of 67 cents, according to a survey of analysts by Thomson First Call.
Allergan said revenue rose 15% to $510.8 million from $443.3 million in the third quarter of 2003. Sales of Botox increased 25% in the quarter to $174.6 million from $139.9 million. Botox is a purified form of botulinum toxin that is used to treat wrinkles and a handful of medical disorders, such as blepharospasm, a condition that causes excessive blinking and can force a patient's eyes shut.
Chief Executive David Pyott told investors in a conference call that Botox sales were strong across the board, thanks to "favorable articles in the media and advertising in the U.S."
Analysts said sales weren't hurt by the high-profile injury-by-Botox suit filed against Allergan by Irena Medavoy, wife of movie producer Mike Medavoy. A jury last month ruled in favor of Allergan.
Timothy Chiang of Natexis Bleichroeder said Botox benefited from improved sales in Europe and a regulatory approval in the United States.
In July, Allergan received Food and Drug Administration approval to promote Botox for a condition called hyperhidrosis, or excessive sweating.
Chiang said that sales of Botox could total $700 million this year and that the drug was on its way to becoming a billion-dollar product.
Allergan said sales of its Alphagan line of drugs for glaucoma rose 2% in the quarter to $73 million and would range from $245 million to $255 million for the year -- better than it had expected. The company had previously forecast Alphagan sales of $215 million to $255 million.
As it announced its earnings, Allergan said it was cutting 325 jobs at a factory in Ireland because the company had terminated a manufacturing deal with Advanced Medical Optics Inc. of Irvine.
Allergan had spun off Advanced Medical, a seller of implantable contact lenses and other devices, two years ago.
Allergan shares rose 94 cents to $72.50 on the New York Stock Exchange.