IRVINE, Calif. (AP) – Botox maker Allergan Inc. said that its first-quarter profit fell 6 percent on one-time costs related to a new collaboration on an experimental migraine drug and other items.
Allergan said its profit decreased to $158.3 million, or 51 cents per share, from $167.9 million, or 55 cents per share, a year earlier. Excluding an upfront payment from its collaboration on the migraine drug candidate Levadex, amortization costs, and other items, the company said it earned 77 cents per share. Revenue rose 10 percent, to $1.27 billion from $1.15 billion.
Analysts expected a profit of 74 cents per share and $1.21 billion in revenue, according to FactSet. The analysts’ estimate excludes one-time items.
On Jan. 31, Allergan said it would work with MAP Pharmaceuticals Inc., which is developing the inhaled migraine treatment Levadex. Allergan paid MAP $60 million upfront and agreed to make up to $97 million in additional payments related to regulatory development. The companies will promote the drug together if it is approved, and share profits on U.S. sales.
Allergan said its eye care drug sales rose 15.6 percent to $591.9 million. Sales of Botox grew 10.1 percent to $364.5 million. That total includes sales of Botox as a wrinkle treatment and other uses, including treatment for repeated migraine headaches and muscle spasms.
Total specialty drug sales increased 13.3 percent to $1.03 billion, and medical device sales grew 13 percent to $224.4 million.
The company raised its profit and revenue projections for the full year. Allergan said it now expects a profit of $3.56 to $3.62 per share excluding one-time items, and $5.05 billion to $5.25 billion in total sales. The outlook includes $4.17 billion to $4.31 billion in specialty drug revenue and $880 million to $940 million from medical device sales. It increased its pharmaceutical revenue estimate by about $10 million and its medical device forecast by about $20 million. It expects $1.5 billion to $1.55 billion in revenue from Botox sales, up about $10 million.
Allergan had previously called for an adjusted profit of $3.54 to $3.60 per share on revenue of $5.02 billion to $5.22 billion. Analysts expected net income of $3.61 per share and revenue of $5.21 billion on average.
In the second quarter, the company expects a profit of 93 cents to 95 cents per share and $1.31 billion to $1.36 billion in sales. Analysts are projecting 92 cents per share in profit and $1.31 billion in revenue.
Date: May 4, 2011
Source: Associated Press