Allergan Q1 Profit Surges, Results Beat View; Lifts Full-Year Outlook

(RTTNews) - Multi-specialty health care company Allergan, Inc. (AGN) on Wednesday reported a surge in profit for the first quarter from last year on higher revenues, including an increase in sales of its anti-wrinkle treatment Botox.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. In addition, the company provided earnings outlook for the second quarter above Street estimates and raised its financial outlook for fiscal 2014.

Allergan also said it's board of directors will carefully consider an unsolicited takeover bid it has received from Canadian drug maker Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO).

David Pyott, chairman and chief executive officer of Allergan said, "In the first quarter Allergan delivered strong sales and earnings per share growth above the high end of our expectations. Furthermore, we are pleased with the continuing strength of our growing markets around the world and our market share gains in many businesses."

Net earnings attributable to Irvine, California-based Allergan for the first quarter were $257.3 million or $0.85 per share, up from $12.5 million or $0.04 per share in the prior-year quarter. The prior-year quarter's results include a charge related to discontinued operations of $258.6 million or $0.85 per share.

Excluding items, adjusted net income for the latest quarter was $358.3 million or $1.18 per share, compared to $296.2 million or $0.98 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 13 percent to $1.65 billion from $1.46 billion in the same quarter last year, and beat analysts' consensus estimate of $1.60 billion.

Allergan's total product net sales for the quarter also increased 13 percent or 14.7 percent on a constant currency basis, from the year-ago quarter to $1.62 billion. Domestic sales accounted for 62.4 percent of the product sales, and international sales accounted for the remaining 37.6 percent.

Specialty pharmaceuticals net sales for the quarter increased 10.4 percent, or 12 percent on a constant currency basis, to $1.43 billion.

Sales of anti-wrinkle treatment Botox/Neuromodulator sales grew 9.6 percent, while eye care pharmaceuticals sales increased 9.2 percent, and skin care and other sales advanced 20.7 percent.

Total core medical devices net sales also grew 23.3 percent, or 25.2 percent on a constant currency basis, to $247.4 million.

Allergan said its board of directors declared a first-quarter dividend of $0.05 per share, payable on June 13 to stockholders of record on May 23, 2014.

Looking ahead to the second quarter, Allergan forecasts adjusted earnings per share in a range of $1.41 to $1.44 and total product net sales between $1.725 billion and $1.800 billion, excluding any future anticipated revenue from the transition services agreements related to the sale of the obesity intervention business.

Analysts expect the company to earn $1.37 per share for the quarter on revenues of $1.74 billion.

For fiscal 2014, Allergan now forecasts adjusted earnings in a range of $5.64 to $5.73 per share, and total product net sales between $6.775 billion and $7.000 billion, excluding the sale of the obesity intervention business.

Earlier, the company forecast full-year adjusted earnings of $5.36 to $5.48 per share, on projected total product net sales between $6.650 billion and $6.950 billion, excluding the sale of the obesity intervention business.

Street is currently looking for earnings of $5.47 per share for the year on revenues of $6.87 billion.

In late April, Allergan confirmed receipt of an unsolicited proposal from Canadian drug maker Valeant Pharmaceuticals to acquire all of the outstanding shares of Allergan for a combination of 0.83 of Valeant common shares and $48.30 in cash per share of common stock of Allergan. The deal is valued at $45.7 billion.

Allergan said its board of directors, in consultation with its financial and legal advisors, will carefully consider the proposal and pursue the course of action that it believes is in the best interests of its stockholders. Allergan has also adopted a one-year stockholder rights plan, commonly known as poison pill, effective April 22, 2014.

AGN is currently trading at $164.90, down $1.42 or 0.85 percent on a volume of 417,604 shares.