Botox Maker Records 15% Rise in 1st-Quarter Profit

Allergan Inc., the maker of Botox injections used to smooth wrinkles, said Friday that its first-quarter profit rose 15% on increased sales of eye-care drugs and Botox.

Net income rose to $80.8 million, or 61 cents a share, from $70.2 million, or 53 cents, a year earlier, the Irvine company said.

Revenue increased 21% to $472.4 million from $391.2 million.

Botox and the dry-eye treatment Restasis led revenue growth. Allergan has said sales of Botox may rise nearly 25% this year as the company seeks approval to market the neurotoxin as a treatment for excessive sweating and studies it for treating migraines.

“An OK but not stellar quarter,” said David W. Maris, an analyst at Banc of America Securities who has a “buy” recommendation on the shares and owns none. “Botox sales of $150.7 million were slightly less than our estimate.”

Earnings excluding gains such as a favorable patent-dispute settlement were 60 cents a share. On that basis, the firm had been expected to earn 59 cents a share, the average estimate of 10 analysts surveyed by Thomson First Call.

Shares of Allergan fell $3.30, or 3.6%, to $88.05 on the New York Stock Exchange. Before Friday, the shares had risen 30% in 12 months.

Allergan said its second-quarter profit would be 61 cents to 62 cents a share, less than the 63-cent estimate of analysts.

Pharmaceutical sales rose 21% in the first quarter to $447.5 million, including a 23% increase in eye-care drugs and a 22% increase in Botox sales.

Allergan said pharmaceutical sales in the second quarter would be $465 million to $485 million.

The company reiterated that it expected to earn $2.72 to $2.75 a share for the year, excluding certain items, which is in line with analysts’ estimates. It had a 2003 profit excluding some items of $305.2 million, or $2.31 a share.

In 2002, Botox received Food and Drug Administration approval for use in temporarily filling in wrinkles between the eyebrows.

Allergan last July applied for U.S. approval to promote Botox injections as a treatment for excessive sweating, a condition that affects about 7.8 million Americans.