* Q1, ex-items, $0.65/shr, vs $0.60/shr forecast
* Sales grow 11.2 pct, meeting expectations
* Adjusts full-year profit view slightly
* Shares rise 3.3 percent
(Adds analyst comment, product sales, byline)
By Ransdell Pierson
NEW YORK, April 30 Allergan Inc reported on
Friday better-than-expected first-quarter earnings on strong
sales of its Botox anti-wrinkle drug and medical devices, and
slightly raised the low end of its 2010 profit forecast despite
costs of U.S. healthcare reforms.
Allergan (AGN.N), whose shares rose 3.3 percent, said it
earned $168 million, or 55 cents per share. That compared with
$45 million, or 15 cents per share, in the year-earlier period,
when the company took restructuring charges.
Excluding special items, Allergan earned 65 cents per
share. Analysts on average had expected 60 cents per share,
according to Thomson Reuters I/B/E/S.
Global company sales rose 11.2 percent to $1.11 billion, in
line with Wall Street forecasts.
Allergan issued a new 2010 profit forecast of $3.11 per
share to $3.15 per share, which includes estimated costs of
recently approved healthcare reforms. The reforms require
drugmakers to give bigger price rebates to patients in the
federal Medicaid insurance program for the poor and will impose
additional costs next year.
The company in February predicted full-year EPS of $3.09 to
$3.15. Its slightly improved forecast stands in contrast to
some large U.S. drugmakers that have cut their 2010 forecasts
in recent weeks due to expected healthcare reform costs.
Botox sales rose 11 percent in the quarter to $331 million,
helped by a recovering economy that allows more patients to
afford the treatments that are not typically covered by
Sales of prescription eye drugs rose 8.1 percent to $512
million, while revenue from medical devices -- including breast
implants and facial fillers -- rose 18 percent to $199
"With the economy improving, we expect Allergan's sales to
increase and shares to appreciate," Lazard Capital Markets
analyst Sean Lavin said in a research note. He attributed the
company's profit beat in the first quarter to surprisingly
better profit margins.
Allergan shares were up $2.06 to $64.04 in morning trading
on the New York Stock Exchange.
(Reporting by Ransdell Pierson, editing by Gerald E. McCormick
and Gunna Dickson)