Allergan second quarter sales grow 17 percent; $50 million contributed to ALRT.IRVINE, Calif.--(BUSINESS WIRE)--July 19, 1995--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 second quarter 1995 worldwide sales of $262.2 million, an increase of 17 percent over the second quarter of 1994. Excluding the impact of foreign currency changes, sales increased 11 percent over the second quarter of 1994. During the quarter, 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 ), a recently formed public company that replaced the Allergan-Ligand Joint Venture. Excluding the impact of the ALRT contribution, earnings per share for the second quarter were $0.42 compared to $0.37 in 1994, an increase of 14 percent. Sales for the first six months of 1995 were $490.5 million, a 13 percent increase over the first six months of 1994. Excluding the impact of foreign currency changes, sales for the first six months of 1995 increased 8 percent over the same period in 1994. Excluding the impact of the ALRT contribution, earnings per share for the first six months were $0.76 per share, an increase of 6 percent over the first six months of 1994. In commenting on the results of the second quarter, Allergan President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William C. Shepherd said, "The base business achieved double digit sales growth performance, including growth from recent acquisitions and new products. We continued to focus on growing the top line and investing in technology. While our objective is to contain SG&A expenses, we have increased our selling and promotional spending to support new product launches in our optical and surgical businesses." Eye Care Business Unit Performance Pharmaceutical Worldwide sales for the eye care pharmaceutical business were $99.3 million for the second quarter of 1995, an 8 percent increase over the second quarter of 1994. Worldwide pharmaceutical sales for the first six months of 1995 were $184.9 million or 2 percent greater than the same period last year. During the second quarter, Betagan(R) solution was launched in France. Based on discussions with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. relative to the clinical significance of the Phase III data, Allergan has voluntarily withdrawn the NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any file for the Betagan(R)/Propine(R) combination formulation for the treatment of 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 . Surgical Sales for the ophthalmic surgical business were $48.4 million during the second quarter of 1995, an increase of 43 percent over the second quarter of 1994. Sales growth in both dollars and units of silicone intraocular lenses (IOLs) continue to be offset by pricing pressures on IOLs in many markets. Sales of Ioptex and OMS OMS - Opportunity Management System products contributed $6.7 million to surgical sales. Excluding the impact of these products, the surgical business grew 23 percent. During the quarter, the U.S. District Court for the Central District of California rendered a unanimous verdict that clearly establishes Microtech, Inc. and Allergan as the owner and exclusive licensee, respectively, of a key surgical instrument patent. Additionally, on July 13, 1995, Allergan received U.S. marketing approval for Diplomax(R), advanced 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 manufactured by OMS. Optical Sales for the Optical 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 business were $93.6 million for the second quarter of 1995, an increase of 14 percent over the second quarter 1994. Late in the second quarter of 1994, Allergan received FDA approval to market the Complete(R) brand one-bottle 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 in the United States. Currently Complete(R) has gained 5 percent market share in the U.S. cold chemical disinfection market. Skin Care Business Unit Sales for Allergan Herbert (skin care) products were $8.8 million during the second quarter of 1995, an increase of 9 percent from the same period last year. The NDA for tazarotene (AGN190168), Allergan's proprietary topical receptor-selective retinoid for psoriasis and acne, was submitted to the U.S. Food and Drug Administration on schedule mid-June 1995. During the quarter Allergan signed an option agreement that includes a Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. to license Hyal Pharmaceutical's topical gel (HYAL-CT1101) and other formulations of hyaluronic acid hyaluronic acid: see mucopolysaccharide. Hyaluronic acid A polysaccharide which is an integral part of the gel-like substance of animal connective tissue; it supposedly serves as a lubricant and shock absorbent in the joints. 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 actinic keratosis n. A warty lesion, often premalignant, occurring on the sun-exposed skin of the face or hands, especially of light-skinned persons. Also called senile keratosis. , a pre-cancerous skin lesion resulting from sun damage. Botox/Neural Care Business Unit Neural care worldwide sales of 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 $12.1 million. This represents an increase of 39 percent compared to the second quarter of 1994. In March 1991, an application was filed with the FDA for approval of a new claim for an indication related to a neck and shoulder neuromuscular disorder known as cervical dystonia cervical dystonia Spasmodic torticollis, see there (torticollis Torticollis Definition Torticollis (cervical dystonia or spasmodic torticollis) is a type of movement disorder in which the muscles controlling the neck cause sustained twisting or frequent jerking. ). Patient enrollment has begun in the clinical trial to provide supplemental clinical data to support the torticollis filing. Additional Financial Highlights Gross profit increased $23.2 million or 15 percent during the second quarter of 1995. 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 68.8 percent, a decrease from 70.0 percent for the same period last year due to sales mix sales mix See product mix. shifts between the high margin pharmaceutical lines and the lower margin surgical products. SG&A expenses for the second quarter of 1995 were $116.4 million, an increase of $20.3 million over the same period last year. The increase is associated with promotional spending on the optical and surgical businesses, as well as acquired businesses. During the first six months of 1995, research and development expenditures declined $1.8 million or 3 percent to $52.0 million as retinoid development costs incurred year to date were billed to ALRT. ALRT has been formed to continue and accelerate the activities of the former Allergan-Ligand Joint Venture related to the discovery and development of drugs based on receptor-selective retinoids Retinoids A derivative of synthetic Vitamin A. Mentioned in: Ichthyosis retinoids (reˑ·t . ALRT has engaged Ligand and Allergan to conduct research and development relating to small molecule retinoid products. Allergan recorded no tax benefit from the $50 million cash contribution to ALRT. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was a negative $12.3 million for the second quarter of 1995. Operating income for the second quarter, excluding the impact of the $50.0 million ALRT contribution, was $37.7 million compared to $34.3 million in 1994, an increase of 10 percent. Net earnings were a negative $23.0 million for the second quarter of 1995. Net earnings for the second quarter, excluding the impact of the $50.0 million ALRT contribution were $27.0 million, compared to $23.5 million in 1994, an increase of 15 percent. Total debt increased to $285.6 million at the end of the second quarter 1995 as a result of the funding of the Frumtost acquisition in Brazil and the $50 million contribution to ALRT. Net debt was $187.0 million at the end of the second quarter. Allergan Inc., a global health care company with headquarters in Irvine, California, 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 health care. The following tables represent condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of income, condensed consolidated balance sheets, and a statement 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 by division. -0-
ALLERGAN INC.
Condensed Consolidated Statements of Income
in millions, Three Months Six Months
except Ended June 30, Ended June 30,
per share
% Inc % Inc
1995 1994 (Dec) 1995 1994 (Dec)
Net Sales $262.2 $224.7 17% $490.5 $434.8 13%
Costs and
expenses
Cost of
sales 81.7 67.4 152.8 130.9
Selling,
general
and
administra-
tive 116.4 96.1 219.9 182.4
Research &
develop-
ment 26.4 26.9 52.0 53.8
Contri-
bution
to ALRT 50.0 - 50.0 -
Operating
Income (12.3) 34.3 (136)% 15.8 67.7 (77)%
Interest
income 1.9 2.0 5.0 3.7
Interest
expense (3.2) (2.7) (5.5) (5.0)
Other, net 2.4 0.6 4.8 0.3
Interest and
other, net 1.1 (0.1) 4.3 (1.0)
Total costs
and
expenses 273.4 190.5 470.4 368.1
Earnings
before
income
taxes and
minority
interest (11.2) 34.2 20.1 66.7
Provision for
income taxes 11.4 10.2 20.6 19.8
Minority
interest 0.4 0.5 0.8 1.2
Net
Earnings $(23.0) $ 23.5 (198)% $ (1.3) $45.7 (103)%
Net earnings
per common
share: $ (0.36)$ 0.37(197)% $ (0.02)$ 0.72(103)%
Weighted
average
number of
common shares
outstanding 64.1 63.5 64.0 63.8
-0-
ALLERGAN INC.
Condensed Consolidated Balance Sheets
in millions June 30, December 31,
1995 1994
Assets
Cash and equivalents $ 98.6 $ 130.7
Trade receivables, net 198.1 179.7
Inventories 106.0 96.8
Other current assets 88.4 78.3
Total current assets 491.1 485.5
Property, plant and equipment,
net 326.6 314.8
Other noncurrent assets 344.9 259.5
Total assets $1,162.6 $1,059.8
Liabilities and stockholders'
equity
Notes payable $ 45.6 $ 48.6
Accounts payable 53.5 59.9
Accrued expenses and income taxes 166.6 215.2
Total current liabilities 265.7 323.7
Long-term debt 240.0 83.7
Other liabilities 40.9 38.5
Minority interest 17.1 10.6
Stockholders' equity 598.9 603.3
Total liabilities and
stockholders' equity $1,162.6 $1,059.8
-0-
ALLERGAN INC.
Net Sales by Division
Three Months Six Months
in millions Ended June 30, Ended June 30,
1995 1994 1995 1994
Pharmaceuticals $ 99.3 $ 92.2 $184.9 $181.9
Surgical 48.4 33.9 88.5 61.2
Optical Lens Care 93.6 81.8 178.6 159.4
Total Eye Care 241.3 207.9 452.0 402.5
Skin Care 8.8 8.1 16.3 15.8
Botox 12.1 8.7 22.2 16.5
TOTAL NET SALES $262.2 $224.7 $490.5 $434.8
Domestic 43 pct 46 pct 44 pct 47 pct
International 57 pct 54 pct 56 pct 53 pct
CONTACT: Allergan, Irvine Jeff D'Eliscu, 714/246-4636 (office) 714/675-9475 (home) |
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