Mentor shares slide early as outlook disappoints

CHICAGO, April 20 (Reuters) - Shares of Mentor Corp. MNT.N fell 18 percent in early trading on Friday, a day after the maker of breast implants posted disappointing results and cut its sales outlook.

Allergan Inc. (AGN.N), its chief competitor in the market for breast implants and other cosmetic products, could benefit from Mentor's troubles, analysts said.

"Mentor pre-announced (fiscal) fourth-quarter sales of about $79 million that widely missed the Street's $88 million, as U.S. breast implant sales were badly impacted by the post-approval study," CIBC World Markets analyst Amit Hazan wrote in a research note.

The Food and Drug Administration required both implant makers to follow patients after they received silicone implants to make sure they are safe.

While the penetration of silicone reached 20 percent, Mentor volume was roughly flat year-over-year, he noted.

"Now we believe docs shifted volume to Allergan in the quarter," Hazan added. Mentor shares, which closed at $48.25 on Thursday on the New York Stock Exchange, fell to $39.50 in trading before the market opened on Friday.

Shares of Allergan closed on Thursday at $118.69 on the NYSE.

((Reporting by Debra Sherman, editing by J.S. Benkoe; Reuters Messaging: debra.sherman.reuters.com@reuters.net; debra. sherman@reuters.com, 1-312-408-8134)) Keywords: MENTOR SHARES/

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