-- Total Product Net Sales Increased 23 Percent for the First
-- Board of Directors Declares First Quarter Dividend
IRVINE, Calif., May 07, 2008 (BUSINESS WIRE) -- Allergan, Inc. (NYSE: AGN) today announced operating results for the quarter ended March 31, 2008. Allergan also announced that its Board of Directors has declared a first quarter dividend of $0.05 per share, payable on June 13, 2008 to stockholders of record on May 23, 2008.
For the quarter ended March 31, 2008:
-- Allergan reported $0.36 diluted earnings per share from continuing operations compared to $0.15 diluted earnings per share reported for the first quarter of 2007.
-- Allergan's adjusted diluted earnings per share from continuing operations were $0.53 in the first quarter of 2008, compared to adjusted diluted earnings per share of $0.46 in the first quarter of 2007, a 15.2% year-over-year increase.
For the quarter ended March 31, 2008:
-- Allergan's total product net sales were $1,061.0 million. Total product net sales increased 23.0 percent, or 18.5 percent at constant currency, compared to total product net sales in the first quarter of 2007.
-- Total specialty pharmaceuticals net sales increased 23.0
percent, or 18.6 percent at constant currency, compared to
total specialty pharmaceuticals net sales in the first
quarter of 2007.
-- Total medical devices net sales increased 23.1 percent, or
18.0 percent at constant currency, compared to total
medical devices net sales in the first quarter of 2007.
"Our results demonstrate the strategic value of product diversity and global presence. The strength of our reimbursed pharmaceutical businesses offset the marginal impact on our elective product lines as the U.S. economy showed signs of softening and consumers adjusted their spending," said David E.I. Pyott, Allergan's Chairman of the Board and Chief Executive Officer. "In addition, both the reimbursed and elective businesses enjoyed robust growth outside the United States with BOTOX(R) growing at double the rate at constant currency internationally than in the United States."
Product and Pipeline Update
During the first quarter of 2008:
-- On January 24, 2008, Allergan and Clinique Laboratories, LLC announced a strategic collaboration to develop a new skin care line, which will be sold exclusively in physicians' offices, to address the need for specialized skin care as the medical aesthetics market grows. The collaboration combines Clinique's expertise in product development and formulation with Allergan's leadership in the medical aesthetics market.
-- On January 30, 2008, the Company announced the phased closure of its breast implant manufacturing facility at Arklow, Ireland and the transfer of production to Allergan's state-of-the-art manufacturing plant in Costa Rica. The Arklow facility was acquired by the Company in connection with its 2006 Inamed acquisition and employs approximately 360 people. Production at the facility is expected to be phased out by the middle of 2009. The Company currently estimates that the total pre-tax restructuring and other transition related costs associated with the closure of the Arklow manufacturing facility will be between $65 million and $70 million, based on current foreign currency exchange rates. The Company began to record costs associated with the closure of the Arklow manufacturing facility in the first quarter of 2008 and expects to continue to incur costs through the fourth quarter of 2009.
On July 2, 2007, Allergan completed the sale of the ophthalmic surgical business that Allergan obtained in connection with its January 2007 acquisition of Groupe Corneal Laboratoires. Operating results of the ophthalmic surgical business are presented as discontinued operations in the financial tables of this press release.
Common Stock Split
On June 22, 2007, Allergan completed a two-for-one stock split of its common stock. The stock split was structured in the form of a 100% stock dividend and was paid to stockholders of record on June 11, 2007. All share and per share data contained in this press release have been adjusted to reflect the effect of the stock split for all periods presented.
For the full year of 2008:
-- Allergan is increasing adjusted diluted earnings per share guidance to between $2.55 and $2.59.
-- All other guidance provided on January 30, 2008 remains unchanged.
For the second quarter of 2008, Allergan estimates:
-- Total product net sales between $1,130 million and $1,160 million.
-- Adjusted diluted earnings per share guidance between $0.62 and $0.63.
Historical adjusted diluted earnings per share, adjusted diluted earnings per share guidance and net sales reported in constant currency are presented as non-GAAP financial measures. A reconciliation of those measures to the most directly comparable GAAP financial measure is included in the financial tables of this press release.
In this press release, the statements regarding product development, market potential, expected growth, the statements by Mr. Pyott as well as the outlook for Allergan's earnings per share, product net sales and revenue forecasts, among other statements above, are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, Allergan's performance at times differs materially from its estimates and targets, and Allergan often does not know what the actual results will be until after a quarter's end and year's end. Therefore, Allergan will not report or comment on its progress during a current quarter except through public announcement. Any statement made by others with respect to progress during a current quarter cannot be attributed to Allergan.
Any other statements in this press release that refer to Allergan's expected, estimated or anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including, among other things, changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms, including government pricing and reimbursement policies; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending or future litigations, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates; international relations; the impact of any economic downturn on consumer spending and the state of the economy worldwide can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law.
Additional information concerning the above-referenced risk factors and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Allergan's 2007 Form 10-K. Copies of Allergan's press releases and additional information about Allergan is available at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 714-246-4636.
About Allergan, Inc.
Founded in 1950, Allergan, Inc., with headquarters in Irvine, California, is a multi-specialty health care company that discovers, develops and commercializes innovative pharmaceuticals, biologics and medical devices that enable people to live life to its greatest potential - to see more clearly, move more freely, express themselves more fully. The Company employs approximately 8,000 people worldwide and operates state-of-the-art R&D facilities and world-class manufacturing plants. In addition to its discovery-to-development research organization, Allergan has global marketing and sales capabilities with a presence in more than 100 countries.
Jim Hindman, 714-246-4636 (investors)
Joann Bradley, 714-246-4766 (investors)
Emil Schultz, 714-246-4474 (investors)
Caroline Van Hove, 714-246-5134 (media)