Allergan reports 13 percent sales growth for the year; board of directors declares quarterly dividend.IRVINE, Calif.--(BUSINESS WIRE)--Jan. 23, 1996--Allergan Inc. (NYSE NYSE See: New York Stock Exchange :AGN AGN Again (Amateur Radio) AGN Active Galactic Nucleus AGN Acute Glomerulonephritis AGN Accountants Global Network AGN Air Gabon (ICAO code) ) announced 1995 worldwide sales of $1.067 billion, an increase of $120.0 million or 13 percent over 1994. Excluding the impact of foreign currency changes, sales increased 9 percent or $86.9 million over the prior year. Allergan's board of directors declared a fourth quarter dividend of $0.12 per share, payable March 8, 1996, to stockholders of record on Feb. 16, 1996. During the fourth quarter of 1995, worldwide sales were $303.1 million, an increase of 12 percent over 1994. Excluding the impact of foreign currency, sales increased $29.6 million or 11 percent over the comparable quarter of the prior year. Earnings per share for the fourth quarter of 1995 were $0.61, compared to $0.54 for 1994, an increase of 13 percent. Earnings per share were $1.12 in 1995 compared to $1.73 in 1994. During the second quarter of 1995, Allergan contributed $50 million to Allergan Ligand Retinoid retinoid /ret·i·noid/ (ret´i-noid) 1. resembling the retina. 2. retinal, retinol, or any structurally similar natural derivative or synthetic compound, with or without vitamin A activity. Therapeutics Inc. (ALRT ALRT Alert ALRT Advanced Light Rapid Transit ALRT Average Likelihood Ratio Test ). Excluding the impact of the ALRT contribution, earnings per share for 1995 were $1.90, compared to $1.73 for 1994, an increase of 10 percent over 1994. "1995 was a year of significant accomplishments," said Allergan Chief Executive Officer and Chairman of the Board William C. Shepherd. "Sales topped $1 billion and we achieved our earnings objective. We completed five acquisitions in 1995 and rapidly moved forward with our geographic expansion in India, China, Latin America and Japan. We also made five strategic investments to expand our technology for the future." Eye Care Business Unit Performance Pharmaceutical Worldwide sales for the eye care pharmaceutical business were $415.1 million, a 6 percent increase over 1994 sales of $390.7 million. During the second quarter, Allergan acquired Laboratorios Frumtost SA, a company operating in Brazil for 25 years in the eye care market. Sales of Frumtost products contributed $17.5 million to pharmaceutical sales in 1995. Excluding the impact of these products, the pharmaceutical business grew 2 percent during 1995. The positive impact of these new products was partially offset by generic competition to Betagan(R) and Propine(R) solutions. In 1994, Allergan introduced a generic version of both Betagan(R) and Propine(R), marketed and distributed by Schein Pharmaceutical, Inc. Allergan's applications for U.S. marketing approval include: Alphagan(TM) (brimonidine), filed in September 1994 for post-surgical elevations in intraocular pressure intraocular pressure n. The pressure of the intraocular fluid within the eye. intraocular pressure (in´tr and in August 1995 for chronic glaucoma chronic glaucoma Ophthalmology A disorder caused by ↑ intraocular pressure, 2º to blockage of the circulation of the aqueous humor, which may damage the optic nerve and cause blindness Clinical ↓ vision, halos around lights–worse at night, mild and ocular hypertension; and Ocuflox(R) solution, filed in March of 1995 for the treatment of corneal ulcers Corneal Ulcers Definition The cornea, the clear front part of the eye through which light passes, is subject to many infections and to injury from exposure and from foreign objects. . An application for U.S. marketing approval for Acular(R) solution for post-operative inflammation and for corneal corneal pertaining to the cornea. See also keratitis, keratopathy. corneal anomaly includes microcornea, coloboma, megalocornea, dermoid, congenital opacity. corneal black body see corneal sequestrum (below). pain are currently anticipated to be filed during the second and fourth quarters of 1996 respectively. Surgical Worldwide sales for the ophthalmic surgical business were $188.7 million during 1995, a 31 percent increase over 1994 sales of $144.3 million. Sales of Ioptex products acquired in September 1994 and OMS OMS - Opportunity Management System phacoemulsification phacoemulsification /phaco·emul·si·fi·ca·tion/ (-e-mul?si-fi-ka´shun) a method of cataract extraction in which the lens is fragmented by ultrasonic vibrations and simultaneously irrigated and aspirated. equipment acquired in January 1995 contributed $25.4 million to surgical sales in 1995. Excluding the impact of these products, the surgical business grew 13 percent during 1995. The positive impact of these new products, as well as increased worldwide unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of intraocular lenses (IOLs), were partially offset by continued IOL IOL Intraocular lens, see there price declines. The AMO AMO - America's Multimedia Online (R) Diplomax(TM) phacoemulsification unit, which is used during cataract surgery Cataract Surgery Definition Cataract surgery is a procedure performed to remove a cloudy lens from the eye; usually an intraocular lens is implanted at the same time. Purpose The purpose of cataract surgery is to restore clear vision. , was launched last October. Additional products in the surgical pipeline include: the AMO(R)Array(R) multifocal IOL and the AMO(R)ClariFlex(TM), an acrylic foldable IOL. Applications for U.S. marketing approval are anticipated to be filed in late 1996 and in 1998 respectively. Optical Worldwide sales for the optical business (contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. care products) were $369.8 million during 1995, up 9 percent from $339.4 million during 1994. Late in the fourth quarter, Allergan acquired the worldwide contact lens care business of Pilkington Barnes Hind. Sales of these products contributed $0.8 million to one month of U.S. optical sales in 1995. The Complete(R) brand multi-purpose contact lens disinfection disinfection, n the process of destroying pathogenic organisms or rendering them inert. disinfection, full oral cavity, n a procedure used to reduce active periodontal disease, usually completed within a certain short time frame. system was successfully launched in the U.S. mid-year 1994. Worldwide, Complete(R) brand and store brand sales achieved double digit market share in 1995. Skin Care Business Unit Performance Worldwide sales for the skin care business were $44.7 million during 1995, a 20 percent increase over 1994 sales of $37.3 million. During the third quarter, Allergan acquired the assets of Herald Pharmacal, a leader in the aesthetic skin care market. Sales of Herald products and Lorsen products (a company acquired in December 1994) contributed $11.5 million to skin care sales in 1995. Excluding the impact of these products, the skin care business declined 11 percent during 1995. The positive impact of these new products was partially offset by a decline in the U.S. prescription griseofulvin griseofulvin /gris·eo·ful·vin/ (gris?e-o-ful´vin) an antibiotic produced by Penicillium griseofulvum ; used as an antifungal in dermatophytoses. gris·e·o·ful·vin n. market resulting from competitive OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). products. Azelex(R) (azelaic acid azelaic acid /az·e·la·ic ac·id/ (az?e-la´ik) a topical antibacterial used in the treatment of acne vulgaris. azelaic acid (az´ ) cream for the topical treatment of mild to moderate inflammatory acne vulgaris acne vul·gar·is n. An inflammatory eruption affecting the face, upper back, and chest, consisting of blackheads, cysts, papules, and pustules, and occurring primarily during puberty and adolescence. , will be launched next month at the American Academy of Dermatology The American Academy of Dermatology (AAD) is the largest organization of dermatologists in the world. The Academy grants Fellowships and Associate Memberships, as well as Fellowships for Nonresidents (of the United States of America or Canada). . Allergan filed an application for U.S. marketing approval mid-year 1995 for its receptor-selective topical retinoid Zorac(TM) (tazarotene) gel for the treatment of both psoriasis and acne. BOTOX(R)/Neuromuscular Business Unit Sales for BOTOX(R) (Botulinum Toxin Type A botulinum toxin type A Botox, Botox Cosmetic, Dysport (UK), Vistabel (UK) Pharmacologic class: Neurotoxin Therapeutic class: Neuromuscular blocker Pregnancy risk category C Action) purified neurotoxin neurotoxin /neu·ro·tox·in/ (noor´o-tok?sin) a substance that is poisonous or destructive to nerve tissue.neu·ro·tox·in n. See neurolysin. complex were $48.9 million during 1995, compared to $35.5 million during 1994, an increase of 38 percent. In March 1995, additional clinical trials were started to support a new claim for treatment of a neck and shoulder neuromuscular disorder known as cervical dystonia cervical dystonia Spasmodic torticollis, see there (spasmodic torticollis spasmodic torticollis Wry neck, see there, aka cervical dystonia ) which affects approximately 160,000 people in the U.S. Additional Financial Highlights The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 69.8 percent for the fourth quarter of 1995 and 69.3 percent for the full year. The slight decrease from the 69.7 percent gross profit margin for the full year in 1994 was due primarily to higher sales of lower margin surgical products. Selling, general and administrative (SG&A) expenses were $451.2 million for 1995 or 42.3 percent of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , an increase of $58.7 million over 1994. The increase in SG&A spending in 1995 includes significant investments in product launches and promotional expenses associated with Complete(R) brand solution and the surgical business as well as overhead related to recent acquisitions. Over the past five years, research and development (R&D) spending has increased by $54.2 million - to $116.7 million in 1995 from $62.5 million in 1990. As a percentage of net sales during that same five-year period, R&D investments were 10.9 percent in 1995 compared to 8.8 percent in 1990. Beginning in 1995, Allergan incurred R&D expenses for retinoid development that were reimbursed by ALRT. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses continued strong throughout the year and was used to fund a number of acquisitions and strategic investments. Allergan recently completed five acquisitions, including: December 1994 - Lorsen SA, an Argentine skin care company; January 1995 - Optical Micro Systems Inc. (OMS), a developer and manufacturer of phacoemulsificaiton equipment; June 1995 - Laboratorios Frumtost SA, the number one eye care company in Brazil; August 1995 - Herald Pharmacal, a pioneer in the field of glycolic acid skin care technology; and, November 1995 - the lens care business of Pilkington Barnes Hind. Strategic investments in 1995 include: May - Allergan signed an Option Agreement to license Hyal Pharmaceutical Corporation's topical gel (HYAL-CT1101) and other formulations of hyaluronic acid and diclofenac for the treatment of basal cell carcinoma basal cell carcinoma n. A slow-growing, locally invasive, but rarely metastasizing neoplasm of the skin derived from basal cells of the epidermis or hair follicles. Also called basal cell epithelioma. and actinic keratosis; June - Allergan contributed $50 million to ALRT to conduct research and development relating to small molecule retinoid products; June - Allergan Pharmaceuticals (Ireland) Ltd., Inc. acquired an additional $6.0 million of Ligand Common Stock; August - Allergan increased its holding in the Santen-Allergan JV in Japan to 100 percent; September - Allergan made a $2.0 million equity investment in Peptide Technology Limited and entered an option agreement on Peptech's GMDP GMDP Grands Moulins De Paris (a synthetic glucosaminyl muramyl dipeptide) for dermatology. Allergan Inc., a global health care company with headquarters in Irvine, Calif., develops, manufactures, and markets specialty therapeutic products for eye and skin care and neuromuscular disorders. A technology-driven company, Allergan is working to be the partner of choice for ever better specialty health care. The following tables represent condensed consolidated statements of income, condensed consolidated balance sheets, and a statement of net sales by division. -0-
ALLERGAN INC.
Condensed Consolidated Statements of Income
Three Months Years
in millions, Ended December 31, Ended December 31,
except per share pct Inc pct Inc
1995 1994 (Dec) 1995 1994 (Dec)
Net Sales $303.1 $270.2 12pct $1,067.2 $947.2 13 pct Costs and expenses
Cost of sales 91.6 80.8 328.0 286.6
Gross profit 211.5 189.4 739.2 660.6
Selling, general
and admini-
strative 119.3 110.6 451.2 392.5
Research &
development 36.8 31.5 116.7 111.5
Contribution
to ALRT - - 50.0 -
Operating
Income 55.4 47.3 17pct 121.3 156.6 (23)pct
Interest
income 2.7 2.3 10.0 8.2
Interest
expense (3.7) (2.8) (13.9) (11.0)
Other, net 1.8 1.4 7.8 5.1
Interest and
other, net 0.8 0.9 3.9 2.3
Total costs and expenses 246.9 222.0 942.0 788.3
Earnings
before
income
taxes and
minority
interest 56.2 48.2 125.2 158.9
Provision for
income taxes 16.7 13.3 51.7 46.2
Minority
interest (0.1) 0.1 1.0 2.0
Net Earnings $ 39.6 $ 34.8 14pct $ 72.5 $110.7 (35)pct
Net earnings
per common
share: $ 0.61 $ 0.54 13pct $ 1.12 $ 1.73 (35)pct
Weighted average number of shares outstanding 65.1 64.2 64.8 63.9 -0-
ALLERGAN INC.
Condensed Consolidated Balance Sheets
in millions December 31, December 31,
1995 1994
Assets Cash and equivalents $ 102.3 $ 130.7 Trade receivables, net 205.7 179.7 Inventories 120.8 96.8 Other current assets 93.5 78.3 Total current assets 522.3 485.5
Property, plant and equipment,
net 357.5 314.8
Other noncurrent assets 436.5 259.5
Total assets $1,316.3 $1,059.8 Liabilities and stockholders' equity Notes payable $ 58.5 $ 48.6 Accounts payable 58.7 59.9 Accrued expenses and income taxes 214.4 215.2 Total current liabilities 331.6 323.7 Long-term debt 266.7 83.7 Other liabilities 49.1 38.5 Minority interest - 10.6 Stockholders' equity 668.9 603.3
Total liabilities and
stockholders' equity $1,316.3 $1,059.8
-0-
ALLERGAN INC.
Net Sales by Division
Three Months Years
in millions Ended December 31, Ended December 31,
1995 1994 1995 1994
Pharmaceuticals $117.9 $108.9 $415.1 $390.7
Surgical 52.7 47.7 188.7 144.3
Optical Lens Care 100.7 90.6 369.8 339.4
Total Eye Care 271.3 247.2 973.6 874.4
Skin Care 17.3 12.6 44.7 37.3
Botox 14.5 10.4 48.9 35.5
TOTAL NET SALES $303.1 $270.2 $1,067.2 $947.2
Domestic 42 pct 47 pct 44 pct 47 pct International 58 pct 53 pct 56 pct 53 pct CONTACT: Allergan, Irvine Jeff D'Eliscu, 714/246-4636 (work) 714/675-9475 (home) |
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