UPDATE 2-Allergan profit, sales top estimates; says weighing Valeant offer

Wed May 7, 2014 11:39am EDT
 
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(Adds analyst comments, details on Allergan approach to Shire)

By Ransdell Pierson

NEW YORK May 7 (Reuters) - Allergan Inc reported better-than-expected first-quarter profit on strong sales of Botox and other products and said it was reviewing an unsolicited $47 billion takeover bid from Valeant Pharmaceuticals International Inc.

In reporting its quarterly results on Wednesday, Allergan noted it has in place a one-year stockholder rights plan, commonly called a poison pill, meant to give the company more time to weigh the offer.

Excluding special items, Allergan earned $1.18 per share, well above the average analysts' forecast of $1.13 per share compiled by to Thomson Reuters I/B/E/S.

The company also raised its full year profit forecast, excluding special items, to between $5.64 and $5.73 per share. In February, it had predicted $5.36 to $5.48 per share.

"Allergan reported a solid start to 2014," Wells Fargo analyst Larry Biegelsen said in a research note. But he said Wall Street's focus will remain on Valeant's hostile bid.

Allergan earned $257 million, or 85 cents per share, in the quarter. That compared with $12.5 million, or 4 cents, in the year-earlier period, when it took a big charge for discontinued operations.

David Maris, an analyst with BMO Capital Markets, said Allergan's strong performance shows the company is well suited to remain independent.   Continued...