Replies to post #119360 on Biotech Values

[DewDiligence]

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.

[DewDiligence]

AGN scores a reversal in appeal of Latisse case:

http://www.reuters.com/article/2011/05/24/allergan-patent-idUSN2425921620110524

Allergan accused a long list of companies, including Athena Cosmetics, Cosmetic Alchemy LLC and Stella International LLC, of either infringing its patented treatment for eyelash growth or inducing others to infringe.

The U.S. District Court for the Central District of California dismissed the case, saying that Allergan failed to prove that it was injured by any infringement. The appeals court, which specializes in patent cases, disagreed. "Here, Allergan has plainly alleged an economic injury that was the result of an unfair business practice," the appeals court said.

Competition from illicit knockoffs is part of the reason that annualized Latisse sales are only $100M (#msg-62751639).

[DewDiligence]

AGN Posts Solid 2Q11 Results, Raises EPS Guidance

[Botox sales grew 16% YoY in dollars and 12% in local currencies to a $1.7B annualized rate. AGN raised full-year 2011 non-GAAP EPS guidance to $3.59-3.63 (up from $3.56-3.62). The company’s own 2Q11 PR is at http://finance.yahoo.com/news/Allergan-Reports-Second-bw-599082946.html?x=0&.v=1 .]

http://www.reuters.com/article/2011/08/03/allergan-idUSN1E7711U120110803

›Wed Aug 3, 2011 10:12am EDT
By Ransdell Pierson

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.‹