Allergan profit rises

By Debra Sherman

CHICAGO (Reuters) - Allergan Inc (AGN.N: Quote, Profile, Research, Stock Buzz) reported on Wednesday its quarterly profit rose on continued strong demand for its Botox anti-wrinkle treatment and other specialty pharmaceuticals and sees continued growth, even if the United States is gripped by a recession.

Its shares initially fell to a two-month low on concerns that demand for its discretionary products would wane in a recession, but rebounded on management assurances about prospects.

"There's nervousness about its aesthetics franchise during a recession," said analyst Peter Bye of Jefferies & Co. "Nothing is immune to a recession."

When asked how a downturn might affect sales of Botox, wrinkle filler and other products used for cosmetic purposes, Allergan Chief Executive David Pyott told a conference call he saw no evidence that demand will weaken.

"Regarding a recessionary environment, as I have said consistently since October, we monitor very carefully what's going on, in particularly the U.S. Everything is direct shipment, so there is no wholesale movements to kind of mask what is true demand in the middle," he said.

He added that there is "not only strong growth in the U.S., strong growth across the world."

The Irvine, California-based maker of breast implants, eyecare solutions and products used to surgically treat obesity, said fourth-quarter net profit rose to $160.3 million, or 52 cents per share, from $136.8 million, or 45 cents per share, a year earlier.

Adjusted earnings from continuing operations were 60 cents per share. Analysts, on average, had expected 58 cents per share, according to Reuters Estimates.