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Botox maker Allergan's profit rises

Earnings Roundup

July 31, 2008|From Times Wire Services

Allergan Inc., maker of the wrinkle smoother Botox, said second-quarter profit rose 6.9% as overseas sales of facial treatments and prescription eye-care products helped the Irvine company weather a slowing U.S. economy.

Net income increased to $147.3 million, or 48 cents a share, from $137.8 million, or 45 cents, a year earlier. Adjusted profit of 63 cents a share matched analysts' estimates.

Revenue climbed 20% to $1.17 billion, topping the average estimate of $1.14 billion in a Bloomberg survey.

Almost half of Allergan's revenue comes from cosmetic treatments, led by Botox and breast implants, and investors have been concerned that consumers may use fewer of these products. Botox sales rose 13% and prescription eyedrops increased 25%. Sales outside the U.S. were "particularly strong," Chief Executive David E.I. Pyott said.

The company narrowed the range of its revenue and earnings forecasts for the year. Allergan now projects profit of $2.12 to $2.14 a share, down from the maximum of $2.25 the company forecast in May.

Allergan began a promotional campaign for Botox with former Olympic gold medal winners Nadia Comaneci and Mark Spitz on July 15, three weeks before the start of the Summer Games in Beijing.

Shares of Allergan fell $1.35, or 2.5%, to $51.75.

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