Allergan (NYSE:AGN) took a ride on the wild side this week as Wall Street pounded the medical aesthetics company after its 1st-quarter earnings release, initially sending share down more than 13%.
Some of the selloff appeared related to news that Irvine, Calif.-based Allergan is delaying the rollout of Darpin, its macular degeneration drug. Investors were also spooked by lowered guidance for 2013 and a bottom-line writedown over the sale of its Lap-Band business.
The news sent AGN shares spiraling some 13% Wednesday. Allergan has since recouped some of those losses in the days that followed.
Including the $259 million writedown, Allergan posted net income of $12.5 million, or 4¢ per share, on $1.43 billion in sales during the 3 months ended March 31, down considerably from profits of $229.8 million, or 74¢ a share, a year earlier. Sales grew 8.3% compared with Q1 2012.
Excluding the writedown, issued to compensate for the discontinued obesity interventions business (including the Lap-Band device), Allergan posted adjusted profits of $296.2 million (98¢ per share), nearly 15% higher than during the same period last year.
Analysis: Why didn’t Lap-Band work for Allergan?
Allergan also said its board officially approved the Lap-Band sale in February and would like to unload the business by the middle of 2013.
The company’s medical device business pulled in $200 million in the quarter, up 10%, paced by strong returns from its facial aesthetic business and its $111 million in sales. Allergan’s breast implant business contracted nearly 9% compared with Q1 2012.
Allergan lowered its 2013 adjusted EPS estimate to $4.70-$4.76 from $4.75-$4.83.
AGN shares were trading at $104.45 apiece today as of about 1:30 p.m., up 3.1%.