Irvine’s Allergan Inc. reported higher fourth-quarter profits that beat Wall Street’s expectations but said a key glaucoma pill failed a third-phase trial and offered a lower outlook for the first quarter.
Allergan’s stock opened down more than 5% on a market value of nearly $20 billion. It finished the day down 1%.
The company said its Memantine drug showed no significant benefit versus a placebo in a trial. Allergan said it continues to look at the drug but doesn’t believe Food and Drug Administration approval is likely.
Allergan and Wall Street had pinned hopes on Memantine as the first potential pill to preserve vision. Other glaucoma treatments come in drops.
For the fourth qearter, Allergan reported net income of $160.3 million, up 17% from a year earlier.
Excluding an eye surgical business that sold off last year, Allergan earned $186 million, beating Wall Street’s expected $180 million.
Revenue was $1.09 billion, up 31% from a year earlier. Wrinkle smoother Botox, other medical cosmetics and specialty drugs drove the gain.
For the first quarter, Allergan said it expects adjusted earnings of $155 million to $158.1 million, versus the $174 million analysts had been expecting.
It sees sales of $1.04 billion to $1.07 billion, above Wall Street’s $1.03 billion.
