Allergan Rises Most in Year as Botox Sales Lift Profit
Allergan Inc. (AGN) climbed the most in almost a year after second-quarter earnings beat analyst estimates and the company raised the lower end of its full-year forecast.
Allergan rose 4.3 percent to close at $85.62 in New York, the biggest increase since Aug. 23, 2011. Earnings excluding some items of $1.07 a share beat by 1 cent the average of 22 analyst estimates compiled by Bloomberg.
Earnings for 2012 will be $4.15 to $4.19 a share, the company said, increasing the lower end of the outlook by 2 cents. Botox sales increased 10 percent to $461.2 million in the second quarter, while revenue from southern Europe wasn’t hurt by the debt crisis, the company said.
“We have just some fabulous growth rates, even in the so- called old Europe,” David Pyott, Allergan’s CEO, said on a conference call with analysts.
Allergan has more than half the European breast implant market share, which is split among 11 companies, Pyott said in a telephone interview. Worldwide sales growth for Allergan’s implants has been 14 percent in this year, he said.
The company’s sales benefited after French and German officials in December recommended that women have surgery to remove faulty implants made by Poly Implant Prothese SA of France. Women sought Allergan’s products as replacements, Pyott said.
“The market doesn’t seem to have taken a hit, despite what one would think would be negative perceptions,” Pyott said.
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