(RTTNews) - Allergan Inc. (AGN: News ) on Thursday posted an 8% increase in profit for the third quarter from last year, helped by higher sales of anti-wrinkle drug Botox and other specialty pharmaceuticals that offset lower sales of medical devices. Excluding items, earnings per share for the quarter increased 8% from a year ago and matched analysts' consensus estimate. Looking ahead, the specialty drug maker raised its adjusted earnings outlook for the full year.

Botox injection, the wrinkle smoother, is Allergan's flagship product with annual sales of over $1 billion. However, with consumers cutting back on the wrinkle treatment in the face of the recession and the FDA requiring a black box labeling on Botox and similar products, Allergan had been reporting quarter-over-quarter decline in Botox sales since the fourth-quarter of last year. With the economy cutting into cosmetic procedures, sales of Allergan's facial aesthetic product portfolio, which includes Juvederm, had also taken a hit.

Third-Quarter Results

Net earnings attributable to Allergan for the third quarter rose to $179 million, or $0.58 per share, from $165.4 million, or $0.54 per share, in the year-ago period.

Non-GAAP net income for the quarter attributable to company increased to $215.4 million, or $0.70 per share, from $200.4 million, or $0.65 per share, in the same period last year. On average, twenty analysts polled by Thomson Reuters expected the company to report earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter increased 3.6% to $1.14 billion from $1.10 billion in the same period last year. Analysts were looking for revenue of $1.08 billion.
While reporting its financial results for the second quarter in July, Allergan had said it anticipates third-quarter non-GAAP earnings attributable to stockholders of $0.67-$0.69 per share, on total product net sales of $1.05 billion-$1.1 billion.

David Pyott, chairman of the Board and chief executive officer of Allergan, said, "We are pleased with our continued operational performance during the third quarter as our businesses are performing better than was expected at the beginning of 2009. With this strength in our businesses, we made the strategic decision to invest in increased Direct to Consumer advertising programs in the U.S. as we anticipate recovery from the recession."

Pyott added, "We are also pleased that we filed, with the U.S. Food and Drug Administration, Botox for chronic migraine as well as for upper limb spasticity."

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