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Allergan Profit Tops Forecasts; Investors Look Past Cautious Outlook, Seize on Botox

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Irvine drug maker Allergan Inc. reported a second-quarter profit that topped Wall Street expectations and offered a cautious outlook for the current quarter and rest of the year.

For the second quarter, Allergan reported an adjusted profit of $258 million, up 13% from a year earlier and topping the $243 million expected on average by analysts.

Allergan, which makes eye and skin drugs and medical cosmetics including Botox, reported revenue of $1.2 billion, up 9% from a year earlier and in line with expectations.

The company’s medical cosmetics, which include wrinkle remover Botox, a wrinkle filler, breast implants and eyelash lengthener Latisse, saw “a continuing recovery” in the quarter, Chief Executive David Pyott said.

Allergan’s medical cosmetics, which make up an estimated third of sales, had slowed in the past year or so as people put off procedures they pay for themselves.

The company’s shares closed up 6% Monday on a market value of $20 billion.

Investors seemed to look past a cautious outlook, which has become common for Allergan, and focused instead on the prospect of Botox being approved as a treatment for migraines.

Allergan said Monday that Food and Drug Administration officials have asked for a physician training plan and other advanced details on Botox as a migraine treatment.

Investors took that as a sign approval could be coming soon.

For the current quarter, Allergan forecast a profit of $228 million to $239 million, just shy of the $240 million analysts had been expecting.

Product sales (slightly less than total revenue), are seen coming in at $1.13 billion to $1.18 billion, versus the $1.19 billion analysts were forecasting.

For 2010, Allergan said it could see a profit of $944 million to $957 million, versus the $960 million analysts had been looking for.

Product sales are seen coming in at $4.6 billion to $4.75 billion. Analysts had been forecasting product revenue of $4.77 million.

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