Wednesday
April
23
2014
10:42 am
Weather
  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  Classifieds
  DJ Designers
  Archives
  Advertise With Us
  About Us
 
 
 
 

Check out our archive of Dining Guides - Yum!

Allergan to sell Lap-Band unit for $75M in cash
October 30, 2013, 05:00 AM The Associated Press

IRVINE — Cosmetic drug and device maker Allergan Inc. reported better-than-expected earnings Wednesday and announced it is selling its Lap-Band gastric bypass business.

Apollo Endosurgery will give Allergan an upfront payment of $75 million in cash plus a $15 million stake in the company in return for rights to the device, which is a stomach-restricting band used to treat obesity. The deal, which is expected to close this year, also includes up to $20 million in additional payments to Allergan based on various business milestones.

Analysts had high hopes for Allergan’s Lap-Band business, in part because more than a third of American adults are obese. In 2011, Allergan won regulatory approval to expand marketing for Lap-Band to a much wider group of obese patients in the U.S., but demand for the device never met expectations. The stomach-restricting band limits food intake, but can also cause irritation of the esophagus, infection, nausea and vomiting in some cases.

Allergan said its net income rose to $299.8 million, or $1 per share, up from $249.4 million, or 82 cents per share, in the prior year period. When adjusted for one-time events and charges the company would have earned $1.23 per share.

Sales increased 13 percent to $1.56 billion in the quarter. Sales of Botox increased 12.5 percent to $486 million. Last month Allergan won U.S. approval to market the botulin-based injection for a new use to treat crow’s feet, or wrinkles that form on the outside edge of the eyes. The drug is approved for a half-dozen other uses, most famously forehead wrinkles, but also migraines and overactive bladder.

Sales of medical devices, including breast implants, increased 13.4 percent to $198.6 million.

Analysts polled by FactSet expected earnings per share of $1.21 on sales of $1.53 billion.

For the fourth quarter Allergan said it expects earnings per share between $1.31 and $1.33. That’s slightly below the most recent estimate by analysts for $1.35 per share.

Shares of Allergan Inc. fell $1.10, or 1.2 percent, to $92.28 in midday trading. Its shares are up 1 percent from the start of the year.

 

 

Tags: allergan, million, share, percent, sales, device,


Other stories from today:

Google Plus adds more tools to edit photos, video
Allergan to sell Lap-Band unit for $75M in cash
Dow at record high as Fed meeting begins
 

 
Print this Page Print this Page  |  Bookmark and Share
<< Back
 
Return To Archives
 
  


 
 
 
Daily Journal Quick Poll
 
What do you think of the Warriors' proposal to move to Mission Bay?

Smart, a better location
Still like the waterfront arena concept
Wish they would stay in Oakland
Anywhere in San Francisco is good
How about the Burlingame waterfront?

 

 
Tabbed Structure - Regular
 
 
 
 
 
First lady announcing one-stop job site for vets
WASHINGTON — Aiming to streamline employment resources for people leaving the military, the govern..
South Korea ferry toll hits 156 as search gets tougher
JINDO, South Korea — As the 156th body was pulled from waters where the ferry Sewol sank a week ag..
Michigan man among first in U.S. to get 'bionic eye'
ANN ARBOR, Mich. — A degenerative eye disease slowly robbed Roger Pontz of his vision. Diagnose..
More >>  
 
 
  
 
  
 
©2014 San Mateo Daily Journal
San Mateo County fictitious business name statements