Botox maker Allergan cuts forecasts amid downturn

* Cuts 2008 sales, profit view amid economic downturn

* Sees profit growth slowdown in 2009

* Q3 EPS 65 cents matches forecast

* Allergan shares rise 5 pct in midday trading

* Says to buy Spectrum, whose shares almost doubles

(Adds earnings details, analyst comment, byline)

By Ransdell Pierson

NEW YORK (Reuters) - Allergan Inc (AGN.N), maker of Botox anti-wrinkle treatment, on Wednesday said the economic downturn would lead to slowing company revenue growth next year and lower-than-expected sales and profit for full-year 2008.

"As the world economy recovers, Allergan intends to re-establish its mid- to high-teens" percentage growth, the Irvine, California-based company said in a release that detailed third-quarter earnings results.

Allergan said its third-quarter sales of Botox rose 7 percent to $318 million, but analysts said that was about $8 million lower than expected, due to economic weakness in the United States.

Allergan said its preliminary estimate of 2009 earnings profit, excluding special items, is for growth of 5 percent to 12 percent over this year, which would reflect a slowdown from typical mid-to high-teens percentage growth in past years.

Allergan lowered its full-year 2008 forecast of adjusted diluted earnings per share to between $2.53 and $2.57, from its earlier view of $2.57 to $2.59.

And it trimmed its 2008 sales forecast to between $4.29 and $4.34 billion, from an earlier prediction of $4.47 billion to $4.58 billion.

On the bright side, however, Allergan announced that its experimental Posurdex drug successfully treated macular edema -- swelling under the central area of the retina -- in late-stage studies and the company would therefore seek U.S. approval of the product in the fourth quarter.

Allergan's shares were up 5 percent in midday trading.

Leerink Swann analyst Gary Nachman said investors had been expecting Allergan to lower its earnings forecasts, in part because of economic conditions.