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Hototc Featured Company: Allergan Inc. (AGN) Shows Positive 1Q Results for its BOTOX Product and International Medical Equipment Sales

As many companies hunker down for what may be a protracted U.S. recession, others are gearing up to take advantage of planning opportunities. The sign of a solid company is the ability to use a slack period in the business cycle to advantage. If the timing is right, this is the company that comes out of the down cycle swinging, and making a bundle doing it.

Allergan Inc., a multi-specialty medical equipment/biologic and pharmaceutical company, offers medical, pharmaceutical and medical equipment products to the cosmetic and professional healthcare fields. The company is the developer of BOTOX and derives a significant portion of its income from the product. It does, however, have a significant presence in the medical equipment market and has been seeing more than positive growth in this particular area.

Many watchers of the company were concerned, in the first quarter, that the current U.S. slowdown would dampen the company’s BOTOX sales. This was not the case, with the company meeting expectations in the BOTOX area and exceeding expectations in international markets for all of its products. This is not to suggest that the domestic market did not see a certain weakening, but it was not as significant as might have been expected for the company. In the first quarter 2008, the company saw earnings growth of 15% over the same period a year earlier.

The company has begun to use its internationally generated revenue wisely. In the first quarter, it increased research and development by 32% and is expecting Phase III results for its BOTOX headache program by summer. The company has clearly made some strategic decisions in the past to position itself for solid future growth. Even with a weak domestic market, it is keeping pace with a solid international program to further diversify its already diversified product base. From almost every direction, this company is putting its best face forward and getting noticed.

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