("Allergan 4Q Net Falls 6.3% On Higher R&D Costs; Margins Improve," at 9:41 a.m. EST, misstated the earnings change direction in the headline and first and fourth paragraphs. A corrected version follows:)
Allergan Inc.'s (>> Allergan, Inc.) fourth-quarter earnings rose 6.3% and margins improved, though the Botox maker saw a sharp rise in research-and-development costs and booked one-time items.
The company also forecast current-quarter earnings of 84 cents to 86 cents a share on revenue of $1.34 billion and $1.39 billion, while analysts surveyed by Thomson Reuters expect 91 cents on $1.38 billion. Allergan also expects full-year earnings of $4.13 to $4.19 a share on revenue between $5.65 billion and $5.85 billion. Analysts were expecting $4.21 a share on $5.89 billion for the year.
Allergan has seen its revenue grow for more than two years, aided by surging sales of the wrinkle-fighting drug Botox. The injectable neurotoxin is approved for both cosmetic use and for treating various medial issues. Allergan has been expanding its pipeline of late, such as buying Vicept Therapeutics Inc., the developer of a cream to treat rosacea, and striking a deal with Map Pharmaceuticals Inc. (>> MAP Pharmaceuticals Inc.) to jointly promote Map's experimental migraine treatment Levadex. Allergan's Botox was also approved in August as a treatment for urinary incontinence in patients with neurologic conditions such as spinal-cord injury and multiple sclerosis.
Allergan reported a profit of $279.8 million, or 90 cents a share, up from $263.1 million, or 85 cents, a year earlier. Excluding items such as amortization, realignment and litigation costs, earnings rose to $1 a share from 88 cents. Revenue jumped 7.1% to $1.4 billion.
Its October projection was earnings of 97 cents to 99 cents a share on sales of $1.33 billion to $1.41 billion.
Operating margin rose to 29.2% from 28.1%.
Research and development costs jumped 13% to $226.4 million.
Specialty pharmaceutical sales--which make up the bulk of Allergan's revenue--rose 8.9%. Revenue from the medical-device segment, which includes breast implants and the Lap-Band System for obesity, decreased 1%.
Shares were trading 1.9% lower at $85.63 premarket. The stock has risen 4.7% over the past three months through Wednesday's close.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; email@example.com