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ALLERGAN REPORTS SECOND QUARTER OPERATING RESULTS; EARNINGS PER SHARE FROM CONTINUING OPERATIONS INCREASE 31 PERCENT

 ALLERGAN REPORTS SECOND QUARTER OPERATING RESULTS;


EARNINGS PER SHARE FROM CONTINUING OPERATIONS INCREASE 31 PERCENT
 IRVINE, Calif., July 22 /PRNewswire/ -- Allergan Inc. (NYSE: AGN) announced earnings per share from continuing operations for the quarter were $0.34, which represents an increase of 31 percent over the second quarter of 1991. Second quarter net earnings increased 25 percent over the same period in 1991 to $23.1 million. Sales for the quarter were $220.7 million, an increase of 7 percent over the second quarter of 1991.
 For the six months ending June 30, earnings per share from continuing operations of $0.64 increased 23 percent compared to the first half of 1991. Net earnings increased 26 percent over the second quarter of 1991 to $43.2 million. Sales were $430.8 million, an increase of 7 percent over the same period in 1991.
 "Allergan's results in the second quarter continue to demonstrate the positive impact of programs enacted to better focus on the customer and to redeploy expenses from overhead into new research and product development," said William C. Shepherd, president and chief executive officer.
 "Sales growth for the quarter was favorably impacted by the launch of UltraCare(TM) in the U.S. and Europe and strong unit volume growth for our intraocular lens (IOL) line. International sales accounted for 53 percent of our revenue for the first six months of 1992.
 "During the quarter we continued to reduce our general and administrative costs, allowing us to allocate additional resources to develop our research pipeline and novel technologies -- including receptor-selective retinoids and BOTOX(R) (Botulinum Toxin Type A). Compared to similar periods in 1991, R&D spending for the second quarter increased $4.7 million or 28 percent, and for the first six months of 1992 it increased $7.2 million or 21 percent, significantly outpacing sales growth," said Shepherd.
 SG&A (selling, general & administrative) expenses decreased $2.9 million for the second quarter compared to the second quarter of 1991. SG&A as a ratio to net sales was 44.1 percent for the second quarter of 1992, a decrease from 48.7 percent for the same period last year. This decrease reflects an ongoing program to improve operating efficiencies. Operating income increased to $32.7 million or 27 percent for the second quarter compared to the same period in 1991.
 "Our strong cash flow enables us to continue to invest in major projects, such as the new R&D facility on the Irvine campus and our investment by a subsidiary in Ligand Pharmaceuticals, a leader in intracellular receptor technology. Net debt at the end of the quarter was $5.8 million compared to $79.6 million a year ago," said Shepherd.
 Business Unit Performance
 Worldwide sales for the specialty pharmaceutical business (eye and skin care) were $95.2 million for the second quarter of 1992 -- a 13 percent increase over the same period last year. Ophthalmic pharmaceutical sales reached $83.3 million during the quarter, a $10.3 million or 14 percent increase over the second quarter of 1991. Included in these sales are almost $5 million in sales of BOTOX(R) (Botulinum Toxin Type A). Sales for Allergan Herbert (skin care) products were $11.9 million in the second quarter, up 8 percent over the second quarter of 1991.
 Worldwide sales for the ophthalmic surgical business were $28.6 million for the second quarter, a 3 percent increase over 1991. "Strong growth in unit sales for the PHACOFLEX(R) foldable IOL continue to be offset by price erosion," stated Richard M. Haugen, Allergan's chief operating officer. In June, the surgical division launched AMO(R) ENDOSOL EXTRA(R) balanced salt solution, an irrigating solution used during eye surgery.
 Worldwide sales for the Optical business (contact lenses and lens care lines) were $96.9 million in the second quarter, up 3 percent over last year. Included in this are lens care product sales of $78.6 million, which grew 7 percent over the second quarter of 1991. "Contact lens care product sales are beginning to reverse prior trends as was evident by the 4.5 percent growth rate for the six months compared to a year ago," said Haugen.
 "The sale of the Americas contact lens business is expected to close later this summer, and we continue to look for a partner for our contact lens business in the rest of the world. The effective tax rate should increase in the second half of the year after the sale of the U.S. contact lens business," said Haugen.
 Research Pipeline Review
 "New technology is the lifeblood of any science-based health care company," said Shepherd. "We remain committed to expanding our product development efforts and to pursuing outside opportunities, such as research collaborations and in-licensing arrangements. The recently announced alliances with Gensia and Ligand enhance our ability to accelerate the development of novel technologies and to pursue markets beyond eye care and skin care."
 The following products are in clinical development or awaiting U.S. marketing approval.
 Specialty Pharmaceutical And Surgical Products
 BOTOX(R) (Botulinum Toxin Type A) is currently awaiting FDA approval for cervical dystonia (torticollis) and is in Phase III clinical trials in juvenile cerebral palsy and Phase II trials in essential tremor. The product is approved in the U.S., Canada, and New Zealand, where it is marketed for treatment of certain eye muscle disorders; and it has received regulatory approval in Italy and Greece.
 Allergan's topical retinoid product (AGN190168), an Allergan developed and patented compound, is currently undergoing advanced Phase II clinical trials in psoriasis and full Phase III acne studies. Both of these studies were started in the fourth quarter of 1991. Allergan and Ligand Pharmaceuticals Inc. have formed a joint venture designed to research, develop, and commercialize pharmaceutical products based on retinoid technology. Allergan will have worldwide responsibility for products in the areas of dermatology and ophthalmology, as well as responsibility for marketing cancer products outside of North America.
 ACULAR(R) solution, ophthalmic ketorolac, is awaiting FDA approval for relief of ocular itching associated with seasonal allergic conjunctivitis. It has received regulatory approval for treatment of postsurgical inflammation in Germany, France, Belgium, Canada, New Zealand, and the Netherlands.
 OCUFEN(R), a topical non-steroidal anti-inflammatory, has completed Phase III clinical trials in the U.S for cystoid macular edema (CME) prevention. An application for U.S. marketing approval was filed with the FDA in February of 1992 and applications for approval are pending in Germany, Greece, New Zealand, Republic of South Africa, and Switzerland.
 OFLOX(R)/EXOCIN(R) solution, a topical anti-infective drug for treating external ocular infection, is awaiting FDA approval. It is currently being marketed in France and Italy.
 AMO(R) ARRAY(R), a true multifocal intraocular lens (IOL), is in clinical trials worldwide in a PMMA material and the improved silicone material version is expected to begin clinical trials next month. The product provides near vision capability with distance correction only and provides depth of focus capability from distance to near.
 Brimonidine, Alpha2 Agonist (AGN190342), for the treatment of chronic open-angle glaucoma and ocular hypertension, began its Phase III clinical trials in the U.S. in the first quarter of 1992. Phase III clinical trials for the prevention and control of postsurgical elevations in intraocular pressure after argon laser trabeculoplasty started in the second quarter of 1990.
 An azelaic acid product (AGN191861) for acne was licensed last year from Schering A.G. After a successful launch in Europe by Schering A.G., Allergan Herbert has filed for approval to market it in Canada, and it is in Phase III clinical trials in the U.S. Allergan has the marketing rights for this product in the U.S. and Canada.
 BETAGAN(R)/PROPINE(R) solution combination formulation for the treatment of chronic glaucoma began extended Phase III clinical trials for the U.S. in the fourth quarter of 1991.
 Contact Lens Care Products
 COMPLETE(TM), Allergan's one-bottle chemical disinfection system for soft contact lenses, is scheduled to be launched in some non- regulated countries during the fourth quarter of 1992. An application for U.S. marketing approval was filed with the FDA last December.
 The next generation one-bottle disinfection system clinical trials are scheduled to begin in 1993 after final development of the delivery system.
 Allergan Inc., headquartered in Irvine, is a global provider of specialty therapeutic products; is expanding beyond skin care and its leadership position in eye care into adjacent markets; and is pursuing other core technologies.
 The following tables represent unaudited condensed consolidated statements of income, condensed consolidated balance sheets, and a statement of net sales by division.
 ALLERGAN INC.
 Condensed Consolidated Statements of Income
 (Unaudited)
 in millions, Three Months Six Months
 except Ended June 30, Ended June 30,
 per share
 pct Inc pct Inc
 1992 1991 (Dec) 1992 1991 (Dec)
 Net Sales $220.7 $205.9 7 pct $430.8 $402.1 7 pct
 Costs and
 expenses
 Cost of
 sales 69.0 62.9 135.6 126.1
 Selling,
 general
 and
 administra-
 tive 97.3 100.2 191.9 190.0
 Research &
 develop-
 ment 21.7 17.0 41.7 34.5
 Operating
 Income 32.7 25.8 27 pct 61.6 51.5 20 pct
 Interest and
 other, net (1.6) (1.8) (3.3) (4.3)
 Total costs
 and expenses 189.6 181.9 372.5 354.9
 Earnings from
 continuing
 operations
 before income
 taxes and
 minority
 interest 31.1 24.0 58.3 47.2
 Provision for
 income taxes 7.5 5.2 14.0 10.7
 Minority
 interest 0.5 1.0 1.1 1.9
 Earnings from
 continuing
 operations 23.1 17.8 30 pct 43.2 34.6 25 pct
 Earnings(loss)
 from
 discontinued
 operations,
 net of
 income taxes --- 0.7 --- (0.4)
 Net Earnings $23.1 $18.5 25 pct $43.2 $34.2 26 pct
 Net earnings
 (loss) per
 common
 share:
 Continuing
 operations $0.34 $0.26 $0.64 $0.52
 Dis-
 continued
 operations --- 0.01 --- (0.01)
 Total $0.34 $0.27 $0.64 $0.51
 Weighted
 average
 number of
 common shares
 outstanding 67.8 67.5 67.8 67.4
 ALLERGAN, INC.
 Condensed Consolidated Balance Sheets
 (Unaudited)
 in millions June 30, December 31,
 1992 1991
 Assets
 Cash and equivalents $139.5 $127.4
 Trade receivables, net 163.9 164.6
 Inventories 104.3 93.1
 Other current assets 28.5 37.3
 Total current assets 436.2 422.4
 Property, plant and equipment,
 net 246.9 237.2
 Other noncurrent assets 173.8 174.0
 Total assets $856.9 $833.6
 Liabilities and stockholders'
 equity
 Notes payable $37.9 $47.9
 Accounts payable 43.2 48.0
 Accrued expenses and income taxes 169.0 173.2
 Total current liabilities 250.1 269.1
 Long-term debt 107.4 97.2
 Other liabilities 12.3 11.4
 Minority interest 11.4 11.0
 Stockholders' equity 475.7 444.9
 Total liabilities and stockholders'
 equity $856.9 $833.6
 ALLERGAN, INC.
 Net Sales by Division
 (Unaudited)
 Three Months Six Months
 in millions Ended June 30, Ended June 30,
 1992 1991 1992 1991
 Specialty
 Pharmaceuticals
 Eye Care $83.3 $73.0 $169.3 $148.0
 Skin Care 11.9 11.0 17.8 16.6
 Total 95.2 84.0 187.1 164.6
 Surgical 28.6 27.8 54.7 51.4
 Optical 96.9 94.1 189.0 186.1
 TOTAL NET SALES $220.7 $205.9 $430.8 $402.1
 Domestic 46 pct 48 pct 47 pct 49 pct
 International 54 pct 52 pct 53 pct 51 pct
 -0- 7/22/92
 /CONTACT: Shel Holtz (media), 714-752-4387 (work), or 818-366-5296 (home), or Jeff D'Eliscu (investor relations), 714-752-4636 (work), or 714-675-9475 (home) both of Allergan/
 (AGN) CO: Allergan Inc. ST: California IN: MTC SU: ERN


JL -- LA023 -- 2151 07/22/92 17:25 EDT
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