Allergan Inc., the maker of Botox, said second-quarter profit rose 2.7 percent and raised its earnings forecast on higher sales of the wrinkle smoother and breast implants.
Net income increased to $246.6 million, or 79 cents a share, from $240.1 million, or 78 cents, a year earlier, the Irvine, California-based company said today in a statement. Earnings, excluding some items, were 96 cents a share, topping the average estimate of 95 cents from 21 analysts surveyed by Bloomberg. Sales rose to $1.42 billion from $1.25 billion a year ago.
“Botox has really gone mainstream,” David Pyott, Allergan’s chief executive officer, said today in a telephone interview. “A big driver is new patients coming into the marketplace.”
Revenue from Botox, Allergan’s top-selling product, was $418 million, an increase of 16 percent from a year earlier and beating the $397.6 million average estimate of seven analysts. Demand for the product has overcome the effects of a weak economy that normally hinder cosmetic sales, said Gary Nachman, a senior analyst at Susquehanna International Group in New York.
“The aesthetic market has been very strong despite a challenging economy,” Nachman said in a telephone interview before Allergan released its earnings. “Your existing patient base won’t go away. They may time the procedures a little differently, but once they get used to looking younger, they don’t want to change that.”
Allergan also sells breast implants, treatments for eye diseases and the eyelash enhancer, Latisse.
Botox, a purified form of the poison botulinum, received U.S. Food and Drug Administration approval last October for use in relieving migraine headaches. The company won backing of the U.K.’s health-cost agency in July for use of Ozurdex as a therapy for impaired vision caused by retinal vein occlusion.
Allergan raised its forecast for 2011 adjusted earnings per share to $3.59 to $3.63 from an earlier target of $3.56 to $3.62. Analysts had estimated $3.64. The company increased its 2011 revenue outlook to $5.22 billion to $5.37 billion from a March forecast of $5.05 billion to $5.25 billion. Ramping up sales of Botox as a therapeutic treatment may boost Botox net sales up to $1.59 billion for 2011, the company said.
“We have some very good long-term growth prospects,” said Pyott. “The power of innovation always beats general economic conditions.”
The company’s shares rose $2.41, or 3.1 percent, to $79.79 at 4 p.m. in New York Stock Exchange composite trading. They have gained 16 percent this year.