Irvine, Calif. - Allergan?s reported first quarter net earnings to $45 million compared to last year, which is a 58 percent decline in profits, analysts say.
Irvine, Calif. -Allergan’s reported first quarter net earnings to $45 million compared to last year, which is a 58 percent decline in profits, analysts say. The current recession has slowed sales of Allergan’s cosmetic products, most notably Botox (botulinum toxin A), which accounts for almost a third of Allergan’s revenue.
Bloomberg.com reports that a survey of surgeons indicates that most are expecting the downward trend to continue throughout the rest of 2009.
In addition to declining consumer spending, Allergan faces other challenges. Botox’s competition for cosmetic uses and the treatment of cervical dystonia, Dysport (Medicus, Ipsen), was approved this week by the Food and Drug Administration (FDA.)
The FDA announced yesterday that Botox and similar injections must carry stronger “black box” warnings about potentially deadly complications.