AGN addendum: With 15% of sales and rapid growth in emerging markets, particularly from self-pay products such as Botox cosmetic, AGN is a play on The Global Demographic Tailwind (#board-15427) without the patent-cliff baggage of Big Pharma. AGN’s P/E ratio is much higher than Big Pharma companies, but the company’s product portfolio and near-flawless execution justify a relatively high P/E, IMO.
NEW YORK, Aug 3 (Reuters) - Allergan Inc (AGN) reported higher second-quarter earnings on strong demand for its medical devices, prescription eye drugs, and Botox treatment for wrinkles and migraine headaches.
The company said on Wednesday that net income rose to $249 million, or 79 cents per share, from $241 million, or 78 cents per share, a year earlier. Excluding special items, earnings were 96 cents per share. Analysts on average expected 95 cents, according to Thomson Reuters I/B/E/S.
Sales rose almost 14 percent to $1.40 billion, topping Wall Street forecasts of $1.34 billion. They would have increased 9.6 percent if not for the weaker dollar, which drives up the value of sales in overseas markets.
Botox sales rose 16 percent to $418 million, helped by the product's recent approval to treat migraines and a somewhat stronger economy that has enabled more patients to pay out of pocket for cosmetic uses.
Prescription eye medicines, by far the company's biggest business, rose 14 percent to $658 million.
Sales of medical devices rose 12 percent to $245 million, fueled by demand for breast implants and dermal fillers. But sales of the company's Lap Band product, to treat obesity, continued to decline.
Allergan nudged up its full-year profit forecast to between $3.59 and $3.63 per share, excluding special items. It had previously expected $3.56 to $3.62.
Allergan shares were up 1 percent at $78.16 in morning trading on the New York Stock Exchange.‹