These are rough times for the medical world. Major pharmaceutical companies like Pfizer (NYSE:PFE) and Lilly (NYSE:LLY) and prominent device companies like Medtronic (NYSE:MDT) and Covidien (NYSE:COV) are limping and wheezing as investors worry about growth prospects in a tough economy and an even tougher FDA.
It would be reasonable to think that if these companies (that are largely protected by serving legitimate medical needs and getting full reimbursement from health insurance) are struggling, a company with more exposure to elective and self-pay products would be in even worse shape. Well, that does not seem to be the case for Allergan (NYSE:AGN). Although Allergan is seeing a hit to growth, Wall Street still seems smitten with this largely cosmetic-oriented company.
A Saggy (But Positive) Quarter
Allergan did manage to surpass the consensus expectations for the third quarter. Product sales rose almost 6% on an as-reported basis, with pharmaceutical sales growing more than 5% and device sales up more than 8% (both were higher on an ex-currency basis). Allergan foresees solid growth in its pharmaceutical portfolio (from drugs like Restasis and Lumigan) and Botox was up more than 4%, despite competition from Medicis (NYSE:MRX).
Allergan did manage to surpass the consensus expectations for the third quarter. Product sales rose almost 6% on an as-reported basis, with pharmaceutical sales growing more than 5% and device sales up more than 8% (both were higher on an ex-currency basis). Allergan foresees solid growth in its pharmaceutical portfolio (from drugs like Restasis and Lumigan) and Botox was up more than 4%, despite competition from Medicis (NYSE:MRX).
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