DOW JONES NEWSWIRES
Allergan Inc. (AGN) posted a 6.1% drop in fourth-quarter net
income on increased charges as the nation's largest seller of
medical products for appearance-enhancement treatments said it will
cut 5% of its work force.
The company also projected results for the current quarter and
all of 2009 largely below analysts' estimates. It sees
first-quarter earnings of 50 cents to 52 cents and product sales of
$960 million to $1 billion. Analysts, on average, projected
earnings of 61 cents and total revenue of $1.05 billion, according
to a survey by Thomson Reuters.
For 2009, Allergan anticipates earnings, excluding items, of
$2.69 a share to $2.75 a share, on product sales of $4.1 billion to
$4.3 billion. Wall Street is projecting earnings of $2.70 a share
on total revenue of $4.43 billion.
Meanwhile, the planned 460 job cuts will mainly target its U.S.
urology sales force and U.S. and European marketing staff, Allergan
said.
Makers of aesthetic medical treatments are bracing for a
challenging year ahead. While many established patients are
sticking to their beauty regimens, it's tough to entice new
patients in the current economic environment. But nearly three out
of four plastic surgeons who responded to a survey this fall
reported that demand has increased or held steady for minimally
invasive procedures, including Allergan's Botox anti-wrinkle drug,
The Wall Street Journal reported.
Allergan reported fourth-quarter net income of $150.6 million,
or 50 cents a share, compared with $160.3 million, or 52 cents a
share, a year earlier. Excluding items, largely restructuring and
acquisition-related, earnings rose to 76 cents a share from 60
cents.
Product sales fell 3.2% to $1.04 billion, but rose 1.6% on a
constant currency basis.
In October, Allergan forecast earnings of 72 cents to 76 cents a
share on product sales of $990 million to $1.04 billion.
Pharmaceutical sales dropped 1.4% because of the weaker dollar
while medical-device revenue slid 9.6%, with half the drop due to
currency changes.
Allergan shares were up 1% to $40.20 in early trading.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com
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