Allergan Inc., the target of an unsolicited takeover bid by Valeant Pharmaceuticals International Inc., reported profit that beat analyst estimates as sales of its Botox treatment increased.
First-quarter earnings, excluding one-time items, of $1.18 a share were 5 cents higher than the average of analyst estimates compiled by Bloomberg. Revenue rose to $1.65 billion, the Irvine company said Wednesday. Analysts had expected $1.61 billion.
Valeant, supported by Allergan's largest shareholder, Pershing Square Capital Management, offered to acquire Allergan in a cash-and-stock deal valued at $45.7 billion when it was announced April 22. Allergan has contacted companies including Sanofi and Johnson & Johnson to explore alternatives to Valeant's bid, said people familiar with the situation who asked not to be identified because the matter is private.
Allergan's board will "carefully review and consider" Valeant's offer, Chief Executive David Pyott said Wednesday on a conference call with analysts. Pyott said he couldn't talk about the transaction in detail.
"Their bottom line is totally driven by revenue beat," said Annabel Samimy, an analyst with Stifel Nicolaus & Co. "It puts them in a strong position."
"They want a bigger takeout offer or to find someone else to be a white knight," Samimy said.
Full-year profit is expected to be $5.64 to $5.73 a share on net product sales of at least $6.78 billion, Allergan said. In February the company had forecast profit of at least $5.48 a share. Analysts had estimated annual sales to increase to $9 billion by 2018.
Allergan shares fell 45 cents, or less than 1%, to $165.87 after the earnings news. They have gained 17% since April 21, before the deal's broad terms came to light.