Quarterly revenue rose at the maker of Botox and Restasis, and Allergan lifted its profit outlook for the year. Fred Katayama reports.
Investors not liking what they see in the maker of the dry-eye drug Restasis. Allergan swung to a loss in its latest quarter partly due to an impairment charge for Restasis but its earnings results beat Wall Street's estimates, and revenue rose 11 percent. Restasis' sales also increased and topped analysts' targets. Allergan has been fighting hard to protect Restasis before rivals hit the market next year with a generic version. Also driving revenue: sales at its medical aesthetics business rose 55 percent. That unit includes its popular wrinkle-reducing treatment, Botox. The branded drug maker slightly raised its profit outlook for this year. Credit Suisse senior analyst Vamil Divan said, "This quarter is a little messy with a number of impairments and adjustments, but overall, most products performed in-line or close to our expectations." Allergan's shares fell at the market open Wednesday, deepening their nearly 16 percent decline this year.