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Allergan Reports Q2, Cautious on Q3

Allergan Inc. on Wednesday reported second-quarter profits in line with Wall Street expectations and sales that beat them.

The Irvine drug maker’s profit before charges came in at $192.1 million, in line with analysts’ expectations and up 17% from a year earlier.

After charges, Allergan’s profit rose 7% to $147.3 million.

Second-quarter sales rose 20% to $1.16 billion, above Wall Street expectations of $1.13 billion.

Specialty drug sales, including flagship Botox, grew 21%, while sales of breast implants, lower-face fillers and the Lap-Band obesity fighting device were up 15%.

One analyst was cautious about expectations for Botox, which saw its quarterly sales grow 13% to $347.8 million.

“We continue to believe Street Botox estimates are too high through 2009,” Amit Hazan of Oppenheimer & Co. said in a research note.

Allergan itself offered a cautious outlook for the third quarter, something Chief Executive David Pyott has called “the good old adage of under-promise and over-deliver.”

Allergan said it expects profits of $195.2 million to $198.2 million, versus analysts’ expectations of $204.3 million.

It expects sales to come in at $1.09 billion to $1.12 billion, versus analyst expectations of $1.13 billion.

For 2008, Allergan said it expects profits of $783.8 million to $790 million, in line with Wall Street’s estimate of $786.9 million.

The company projects sales of $4.46 billion to $4.57 billion, versus Wall Street expectations of $4.54 billion.

Allergan shares were flat at close of trading with a market value of $16 billion.

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