Allergan Reports Third Quarter Operating Results; Pharmaceutical Sales Increased 15 Percent for the Third Quarter; Board of Directors Declares Third Quarter Dividend
IRVINE, Calif., Nov 1, 2004 (BUSINESS WIRE) -- Allergan, Inc. (NYSE:AGN) today announced operating results for the third quarter ended September 24, 2004. Allergan also announced that its Board of Directors has declared a third quarter dividend of $0.09 per share, payable on December 9, 2004, to stockholders of record on November 10, 2004.
Operating Results
For the quarter ended September 24, 2004:
-- Allergan's net sales were $510.8 million, including $26.0
million of non-pharmaceutical product sales, primarily
consisting of contract manufacturing sales to Advanced Medical
Optics, Inc. (AMO), a former subsidiary that was spun-off from
Allergan on June 29, 2002.
-- Pharmaceutical sales were up 14.9 percent, or 13.0 percent at
constant currency, compared to pharmaceutical sales in the
third quarter of 2003.
-- Allergan reported $0.70 diluted earnings per share, including
the recognition of a technology transfer fee received from
Elan Corporation for the sale of Elan's worldwide rights to
Mybloc(TM) / Neurobloc(TM) injectable solution to Solstice
Neurosciences, Inc. and the effect of an unrealized loss on
the mark-to-market adjustment to foreign currency derivative
instruments, totaling $4.9 million pre-tax, compared to the
$0.57 diluted earnings per share reported for the third
quarter of 2003.
-- Allergan's adjusted diluted earnings per share were $0.67,
representing a 17.5 percent increase compared to the adjusted
diluted earnings per share of $0.57 reported for the third
quarter of 2003. Adjusted diluted earnings per share for the
third quarter of 2004 exclude the effects of the Elan
technology transfer fee and the unrealized loss. A
reconciliation of the adjustments made from reported earnings
per share to adjusted earnings per share is contained in the
financial tables of this document.
"We are extremely pleased with the Company's results and performance in the third quarter. We continue to drive forward our key clinical programs, which are the fuel for our innovation and long-term sales growth," said David E.I. Pyott, Allergan's Chairman of the Board, President and Chief Executive Officer.
Product and Pipeline Update
During the third quarter of 2004:
-- Allergan filed an Investigational New Drug Application (IND)
with the United States Food & Drug Administration (FDA) for
its proton pump inhibitor pro drug for the treatment of
gastrointestinal disease.
-- Allergan filed an IND application with the FDA for an alpha
adrenergic agonist for the treatment of neuropathic pain.
-- On July 12, 2004, the FDA Joint Dermatologic & Ophthalmic
Drugs and Drug Safety & Risk Management Advisory Committee
recommended against the approval of oral tazarotene for the
treatment of moderate to very severe psoriasis.
-- On July 20, 2004, Allergan announced that the FDA approved
Botox(R) (botulinum toxin type A) for the treatment of severe
primary axillary hyperhidrosis (severe underarm sweating) that
is inadequately managed with topical agents.
-- On August 2, 2004, Allergan announced that the FDA issued an
approvable letter for its Lumigan(R) timolol combination
product for glaucoma (bimatoprost 0.03 percent/timolol 0.05
percent ophthalmic solution).
-- On August 24, 2004, Allergan announced that it filed a patent
infringement lawsuit against Alcon Laboratories, Inc., Alcon
Research, Ltd. and Alcon, Inc. (NYSE:ACL) (collectively
"Alcon") in response to Alcon's filing of a New Drug
Application with the FDA under section 505(b)(2) of the
Federal Food, Drug and Cosmetic Act. Alcon seeks to market a
generic brimonidine tartrate ophthalmic solution 0.15% in the
United States.
Following the end of the third quarter of 2004:
-- On September 27, 2004, Allergan announced that the FDA issued
a non-approvable letter for oral tazarotene for the treatment
of moderate to very severe psoriasis. Allergan will continue
to work with the FDA towards its goal of bringing oral
tazarotene to patients suffering from moderate to very severe
psoriasis.
-- On October 8, 2004, Allergan and Peplin Ltd. agreed to
discontinue their collaboration for the development and
commercialization of skin cancer products in North America and
South America based on Peplin's proprietary and novel
anti-cancer compound PEP005.
-- On October 8, 2004, Allergan announced that the jury in the
Irena Medavoy vs. Arnold Klein, M.D., and Allergan, Inc.
lawsuit found that Allergan's product Botox(R) (botulinum
toxin type A) was not responsible for the conditions Irena
Medavoy alleged she suffered following her treatment with
Botox(R) for migraine. The court also dismissed all claims
against both Allergan and Dr. Klein pertaining to the
California Business and Professions Code.
Effective July 9, 2004, Ronald M. Cresswell retired as a member of Allergan's Board of Directors for personal health reasons.
On July 28, 2004, Allergan announced the appointments of Prof. Trevor M. Jones to the Company's Board of Directors and Dr. Scott Whitcup to the position of Executive Vice President, Research & Development.
Effective October 27, 2004, Allergan's Board of Directors approved certain restructuring activities related to the planned termination of Allergan's manufacturing and supply agreement with Advanced Medical Optics, Inc. Allergan anticipates that the pre-tax restructuring charges, expected to total between $24 million and $28 million, will be recorded beginning in the fourth quarter of 2004 up through the fourth quarter of 2005.
Outlook
For the fourth quarter of 2004, Allergan estimates:
-- Total pharmaceutical only sales between $495 million and $510
million.
-- Adjusted diluted earnings per share between $0.83 and $0.84.
For the full year of 2004:
-- Allergan is increasing the expected range of Alphagan(R)
Franchise sales to between $245 million and $265 million.
-- Total pharmaceutical sales guidance, contract sales guidance
and all other product sales guidance provided in July 2004
remains unchanged.
-- Income statement ratio guidance provided in July 2004 remains
unchanged.
-- Allergan is narrowing its adjusted diluted earnings per share
guidance to between $2.74 and $2.75. Adjusted diluted earnings
per share guidance excludes any non-GAAP adjustments to
diluted earnings per share. Non-GAAP adjustments include the
restructuring activities discussed above.
Forward-Looking Statements
In this press release, the statements regarding the outlook for Allergan's earnings per share and revenue forecasts, and the statements from Mr. Pyott, among other statements above, are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, Allergan's performance at times differs materially from its estimates and targets, and Allergan often does not know what the actual results will be until after a quarter's end and year's end. Therefore, Allergan will not report or comment on its progress during a current quarter. Any statement made by others with respect to progress during a current quarter cannot be attributed to Allergan.
Any other statements in this press release that refer to Allergan's expected, estimated or anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including, among other things, changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance, of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending litigations, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates; international relations; and the state of the economy worldwide, can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan expressly disclaims any intent or obligation to update these forward-looking statements.
Additional information concerning these and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Allergan and its Businesses" in Allergan's 2003 Form 10-K and the Company's Form 10-Q for the quarter ended June 25, 2004. Copies of Allergan's press releases and additional information about Allergan is available on the World Wide Web at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 714-246-4636.
About Allergan, Inc.
Allergan, Inc., with headquarters in Irvine, California, is a technology-driven, global health care company providing specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care, neuromodulator, skin care and other specialty markets that deliver value to its customers, satisfy unmet medical needs, and improve patients' lives.
ALLERGAN, INC.
Condensed Consolidated Statements of Earnings and
Reconciliation of Non-GAAP Adjustments
(Unaudited)
Three months ended
----------------------------
in millions, except per share amounts September 24, 2004
----------------------------------------- ----------------------------
Non-GAAP
GAAP Adjustments Adjusted
------- ----------- --------
Product sales
Net sales $510.8 $-- $510.8
Cost of sales 99.1 -- 99.1
------- ----------- --------
Product gross margin 411.7 -- 411.7
Research services
Research service revenues -- -- --
Cost of research services -- -- --
------- ----------- --------
Research services margin -- -- --
Selling, general and administrative 195.5 -- 195.5
Research and development 83.0 -- 83.0
------- ----------- --------
Operating income 133.2 -- 133.2
Interest income 2.6 -- 2.6
Interest expense (6.8) -- (6.8)
Unrealized gain (loss) on derivative
instruments, net (0.1) 0.1(a) --
Gain on investments, net -- -- --
Other, net 3.6 (5.0)(b) (1.4)
------- ----------- --------
(0.7) (4.9) (5.6)
------- ----------- --------
Earnings before income taxes and
minority interest 132.5 (4.9) 127.6
Provision (benefit) for income taxes 40.3 (1.9)(c) 38.4
Minority interest 0.2 -- 0.2
------- ----------- --------
Net earnings $92.0 $(3.0) $89.0
======= =========== ========
Net earnings per share:
Basic $0.70 $0.68
======= ========
Diluted $0.70 $0.67
======= ========
Weighted average number of common shares
outstanding:
Basic 131.5 131.5
Diluted 132.2 132.2
Selected ratios as a percentage of net
sales
--------------------------------------
Gross profit 80.6% 80.6%
Selling, general and administrative 38.3% 38.3%
Research and development 16.2% 16.2%
Three months ended
----------------------------
in millions, except per share amounts September 26, 2003
----------------------------------------- ----------------------------
Non-GAAP
GAAP Adjustments Adjusted
------- ----------- --------
Product sales
Net sales $443.3 $-- $443.3
Cost of sales 82.8 -- 82.8
------- ----------- --------
Product gross margin 360.5 -- 360.5
Research services
Research service revenues -- -- --
Cost of research services -- -- --
------- ----------- --------
Research services margin -- -- --
Selling, general and administrative 171.1 -- 171.1
Research and development 81.0 -- 81.0
------- ----------- --------
Operating income 108.4 -- 108.4
Interest income 2.6 -- 2.6
Interest expense (3.9) -- (3.9)
Unrealized gain (loss) on derivative
instruments, net 0.1 (0.1)(a) --
Gain on investments, net 0.2 -- 0.2
Other, net (1.0) -- (1.0)
------- ----------- --------
(2.0) (0.1) (2.1)
------- ----------- --------
Earnings before income taxes and
minority interest 106.4 (0.1) 106.3
Provision (benefit) for income taxes 29.8 -- 29.8
Minority interest 0.6 -- 0.6
------- ----------- --------
Net earnings $76.0 $(0.1) $75.9
======= =========== ========
Net earnings per share:
Basic $0.58 $0.58
======= ========
Diluted $0.57 $0.57
======= ========
Weighted average number of common shares
outstanding:
Basic 130.5 130.5
Diluted 133.0 133.0
Selected ratios as a percentage of net
sales
--------------------------------------
Gross profit 81.3% 81.3%
Selling, general and administrative 38.6% 38.6%
Research and development 18.3% 18.3%
(a) Unrealized gain/(loss) on the mark-to-market adjustment to
derivative instruments.
(b) Technology transfer fee.
(c) Tax effect for non-GAAP adjustments.
"GAAP" refers to financial information presented in accordance with
generally accepted accounting principles in the United States.
This press release includes historical non-GAAP financial measures, as
defined in Regulation G promulgated by the Securities and Exchange
Commission, with respect to the three and nine months ended September
24, 2004 and September 26, 2003. Allergan believes that its
presentation of historical non-GAAP financial measures provides useful
supplementary information to investors. The presentation of historical
non-GAAP financial measures is not meant to be considered in isolation
from or as a substitute for results prepared in accordance with
accounting principles generally accepted in the United States.
In this press release, Allergan reported the non-GAAP financial
measure "adjusted earnings" and related "adjusted diluted earnings per
share." Allergan uses adjusted earnings to enhance the investor's
overall understanding of the financial performance and prospects for
the future of Allergan's core business activities. Specifically,
Allergan believes that a report of adjusted earnings provides
consistency in its financial reporting and facilitates the comparison
of results of core business operations between its current, past and
future periods. Adjusted earnings is one of the primary indicators
management uses for planning and forecasting in future periods.
Allergan also uses adjusted earnings for evaluating management
performance for compensation purposes.
ALLERGAN, INC.
Condensed Consolidated Statements of Earnings and
Reconciliation of Non-GAAP Adjustments
(Unaudited)
Nine months ended
-------------------------------
in millions, except per share amounts September 24, 2004
-------------------------------------- -------------------------------
Non-GAAP
GAAP Adjustments Adjusted
--------- ----------- ---------
Product sales
Net sales $1,489.4 $-- $1,489.4
Cost of sales 282.9 -- 282.9
--------- ----------- ---------
Product gross margin 1,206.5 -- 1,206.5
Research services
Research service revenues -- -- --
Cost of research services -- -- --
--------- ----------- ---------
Research services margin -- -- --
Selling, general and administrative 572.8 2.4(a) 575.2
Research and development 257.6 -- 257.6
--------- ----------- ---------
Operating income 376.1 (2.4) 373.7
Interest income 6.8 -- 6.8
Interest expense (14.2) -- (14.2)
Unrealized gain (loss) on derivative
instruments, net 0.1 (0.1)(c) --
Gain on investments, net -- -- --
Other, net 2.3 (5.0)(d) (2.7)
--------- ----------- ---------
(5.0) (5.1) (10.1)
--------- ----------- ---------
Earnings before income taxes and
minority interest 371.1 (7.5) 363.6
Provision (benefit) for income taxes 105.8 3.2(e) 109.0
Minority interest 0.7 -- 0.7
--------- ----------- ---------
Net earnings $264.6 $(10.7) $253.9
========= =========== =========
Net earnings per share:
Basic $2.02 $1.93
========= =========
Diluted $1.99 $1.91
========= =========
Weighted average number of common
shares outstanding:
Basic 131.3 131.3
Diluted 133.0 133.0
Selected ratios as a percentage of net
sales
--------------------------------------
Gross profit 81.0% 81.0%
Selling, general and administrative 38.5% 38.6%
Research and development 17.3% 17.3%
Nine months ended
-------------------------------
in millions, except per share amounts September 26, 2003
-------------------------------------- -------------------------------
Non-GAAP
GAAP Adjustments Adjusted
--------- ----------- ---------
Product sales
Net sales $1,276.0 $-- $1,276.0
Cost of sales 231.3 -- 231.3
--------- ----------- ---------
Product gross margin 1,044.7 -- 1,044.7
Research services
Research service revenues 16.0 -- 16.0
Cost of research services 14.5 -- 14.5
--------- ----------- ---------
Research services margin 1.5 -- 1.5
Selling, general and administrative 526.2 -- 526.2
Research and development 492.6 (278.8)(b) 213.8
--------- ----------- ---------
Operating income 27.4 278.8 306.2
Interest income 10.7 -- 10.7
Interest expense (12.2) -- (12.2)
Unrealized gain (loss) on derivative
instruments, net (0.9) 0.9(c) --
Gain on investments, net -- -- --
Other, net (1.6) -- (1.6)
--------- ----------- ---------
(4.0) 0.9 (3.1)
--------- ----------- ---------
Earnings before income taxes and
minority interest 23.4 279.7 303.1
Provision (benefit) for income taxes (16.2) 101.0(f) 84.8
Minority interest 1.3 -- 1.3
--------- ----------- ---------
Net earnings $38.3 $178.7 $217.0
========= =========== =========
Net earnings per share:
Basic $0.29 $1.67
========= =========
Diluted $0.29 $1.64
========= =========
Weighted average number of common
shares outstanding:
Basic 130.2 130.2
Diluted 132.1 132.5
Selected ratios as a percentage of net
sales
--------------------------------------
Gross profit 81.9% 81.9%
Selling, general and administrative 41.2% 41.2%
Research and development 38.6% 16.8%
(a) Patent infringement settlement.
(b) In-process research and development charge related to the
acquisition of Bardeen Sciences Company, LLC.
(c) Unrealized gain/(loss) on the mark-to-market adjustment to
derivative instruments.
(d) Technology transfer fee.
(e) Favorable recovery of previously paid state income taxes and tax
effect for non-GAAP adjustments.
(f) Tax effect for non-GAAP adjustments.
"GAAP" refers to financial information presented in accordance with
generally accepted accounting principles in the United States.
See non-GAAP financial measures disclosure on previous table.
ALLERGAN, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
in millions September 24, December 31,
2004 2003
------------------------------------------ ------------- -------------
Assets
Cash and equivalents $778.9 $507.6
Trade receivables, net 262.0 220.1
Inventories 84.8 76.3
Other current assets 111.5 124.2
------------- -------------
Total current assets 1,237.2 928.2
Property, plant and equipment, net 448.2 422.5
Other noncurrent assets 413.8 404.2
------------- -------------
Total assets $2,099.2 $1,754.9
============= =============
Liabilities and stockholders' equity
Notes payable $21.6 $24.4
Accounts payable 97.3 87.2
Accrued expenses and income taxes 306.8 271.8
------------- -------------
Total current liabilities 425.7 383.4
Long-term debt 568.3 573.3
Other liabilities 107.7 79.6
Stockholders' equity 997.5 718.6
------------- -------------
Total liabilities and stockholders' equity $2,099.2 $1,754.9
============= =============
Days on Hand (DOH) 78 78
Days Sales Outstanding (DSO) 47 42
Cash, net of debt $189.0 $(90.1)
Debt-to-capital percentage 37.2% 45.4%
ALLERGAN, INC.
Reconciliation of Diluted Earnings Per Share
(Unaudited)
in millions, except per share amounts Three months ended
---------------------------------------- -----------------------------
September 24, September 26,
2004 2003
-------------- --------------
Net earnings, as reported $92.0 $76.0
Non-GAAP pre-tax adjustments:
Technology transfer fee (5.0) --
In-process research and development -- --
Patent infringement settlement -- --
Unrealized (gain) loss on derivative
instruments 0.1 (0.1)
-------------- --------------
87.1 75.9
Tax effect for above items 1.9 --
State income tax recovery -- --
-------------- --------------
Adjusted diluted earnings 89.0 75.9
Interest expense from convertible
subordinated notes, net of tax -- 0.2
-------------- --------------
$89.0 $76.1
============== ==============
Weighted average number of shares issued 131.5 130.5
Net shares assumed issued using the
treasury stock method for options
outstanding during each period based on
average market price 0.7 2.1
Dilutive effect of assumed conversion of
convertible subordinated notes
outstanding -- 0.4
-------------- --------------
132.2 133.0
============== ==============
Diluted earnings per share, as reported $0.70 $0.57
Non-GAAP earnings per share adjustments:
Technology transfer fee (0.03) --
In-process research and development -- --
Patent infringement settlement -- --
State income tax recovery -- --
Unrealized (gain) loss on derivative
instruments -- --
-------------- --------------
Adjusted diluted earnings per share $0.67 $0.57
============== ==============
Year over year change 17.5%
=====
in millions, except per share amounts Nine months ended
---------------------------------------- -----------------------------
September 24, September 26,
2004 2003
-------------- --------------
Net earnings, as reported $264.6 $38.3
Non-GAAP pre-tax adjustments:
Technology transfer fee (5.0) --
In-process research and development -- 278.8
Patent infringement settlement (2.4) --
Unrealized (gain) loss on derivative
instruments (0.1) 0.9
-------------- --------------
257.1 318.0
Tax effect for above items 2.9 (101.0)
State income tax recovery (6.1) --
-------------- --------------
Adjusted diluted earnings 253.9 217.0
Interest expense from convertible
subordinated notes, net of tax -- 0.6
-------------- --------------
$253.9 $217.6
============== ==============
Weighted average number of shares issued 131.3 130.2
Net shares assumed issued using the
treasury stock method for options
outstanding during each period based on
average market price 1.7 1.9
Dilutive effect of assumed conversion of
convertible subordinated notes
outstanding -- 0.4
-------------- --------------
133.0 132.5
============== ==============
Diluted earnings per share, as reported $1.99 $0.29
Non-GAAP earnings per share adjustments:
Technology transfer fee (0.03) --
In-process research and development -- 1.34
Patent infringement settlement (0.01) --
State income tax recovery (0.04) --
Unrealized (gain) loss on derivative
instruments -- 0.01
-------------- --------------
Adjusted diluted earnings per share $1.91 $1.64
============== ==============
Year over year change 16.5%
=====
ALLERGAN, INC.
Supplemental Non-GAAP Information
(Unaudited)
Three months ended $ change in net sales
September 24, September 26, ---------------------
2004 2003 Total Perfor- Curr-
mance ency
------------- ------------- ------- ------- -----
in millions
-------------------
Eye Care
Pharmaceuticals $285.4 $252.8 $32.6 $27.5 $5.1
Botox/Neuromodulator 174.6 139.9 34.7 31.8 2.9
Skin Care 24.8 29.2 (4.4) (4.4) --
------------- -------------- ------- ------- -----
Total 484.8 421.9 62.9 54.9 8.0
Other (primarily
contract sales) 26.0 21.4 4.6 4.6 --
------------- -------------- ------- ------- -----
Net sales, as
reported $510.8 $443.3 $67.5 $59.5 $8.0
============= ============== ======= ======= =====
Alphagan P and
Alphagan $73.0 $71.4 $1.6 $0.4 $1.2
Lumigan 60.3 46.8 13.5 12.3 1.2
Other Glaucoma 4.6 5.5 (0.9) (1.1) 0.2
Restasis 24.1 10.7 13.4 13.5 (0.1)
Tazorac, Zorac and
Avage 18.8 22.3 (3.5) (3.6) 0.1
Domestic 69.2% 69.3%
International 30.8% 30.7%
Percent change in net sales
-----------------------------
Total Performance Currency
----- ------------ ---------
Eye Care Pharmaceuticals 12.9% 10.9% 2.0%
Botox/Neuromodulator 24.8% 22.7% 2.1%
Skin Care (15.1)% (15.1)% --%
Total 14.9% 13.0% 1.9%
Other (primarily contract sales) 21.5% 21.5% --%
Net sales, as reported 15.2% 13.4% 1.8%
Alphagan P and Alphagan 2.2% 0.6% 1.6%
Lumigan 28.8% 26.3% 2.5%
Other Glaucoma (16.4)% (20.0)% 3.6%
Restasis 125.2% 126.2% (1.0)%
Tazorac, Zorac and Avage (15.7)% (16.1)% 0.4%
Nine months ended $ change in net sales
September 24, September 26, ---------------------
2004 2003 Total Perfor- Curr-
mance ency
-------------- ------------- ------- ------- -----
in millions
-------------------
Eye Care
Pharmaceuticals $835.1 $727.1 $108.0 $87.7 $20.3
Botox/Neuromodulator 502.2 406.1 96.1 85.1 11.0
Skin Care 73.9 79.8 (5.9) (6.0) 0.1
------------- ------------- ------- ------- -----
Total 1,411.2 1,213.0 198.2 166.8 31.4
Other (primarily
contract sales) 78.2 63.0 15.2 15.0 0.2
------------- ------------- ------- ------- -----
Net sales, as
reported $1,489.4 $1,276.0 $213.4 $181.8 $31.6
============= ============= ======= ======= =====
Alphagan P and
Alphagan $204.7 $213.6 $(8.9) $(13.3) $4.4
Lumigan 171.1 129.6 41.5 37.1 4.4
Other Glaucoma 14.8 16.7 (1.9) (2.8) 0.9
Restasis 65.5 22.5 43.0 43.0 --
Tazorac, Zorac and
Avage 53.9 58.9 (5.0) (5.0) --
Domestic 69.4% 70.7%
International 30.6% 29.3%
Percent change in net sales
-----------------------------
Total Performance Currency
----- ----------- ---------
Eye Care Pharmaceuticals 14.9% 12.1% 2.8%
Botox/Neuromodulator 23.7% 21.0% 2.7%
Skin Care (7.4)% (7.5)% 0.1%
Total 16.3% 13.8% 2.5%
Other (primarily contract sales) 24.1% 23.8% 0.3%
Net sales, as reported 16.7% 14.2% 2.5%
Alphagan P and Alphagan (4.2)% (6.2)% 2.0%
Lumigan 32.0% 28.6% 3.4%
Other Glaucoma (11.4)% (16.8)% 5.4%
Restasis 191.1% 191.1% --%
Tazorac, Zorac and Avage (8.5)% (8.5)% --%
In this press release, Allergan reported sales performance using the non-GAAP financial measure of constant currency sales. Constant currency sales represent current period reported sales adjusted for the translation effect of changes in average foreign exchange rates between the current period and the corresponding period in the prior year. Allergan calculates the currency effect by comparing adjusted current period reported amounts, calculated using the monthly average foreign exchange rates for the corresponding period in the prior year, to the actual current period reported amounts. Management refers to growth rates at constant currency so that sales results can be viewed without the impact of changing foreign currency exchange rates, thereby facilitating period-to-period comparisons of Allergan's sales. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates will be higher or lower, respectively, than growth reported at actual exchange rates.
SOURCE: Allergan, Inc.
Allergan, Inc., Irvine Jim Hindman (Investors), 714-246-4636 Joann Bradley (Investors), 714-246-4766 Ashwin Agarwal (Investors), 714-246-4582 Stephanie Fagan (Media), 714-246-5232
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