Allergan Quarterly Profits Up 63%
Allergan Inc. said Wednesday that second-quarter profits soared 63% and that it is undergoing an “extensive review” of its operations and cost structure under its new chief executive David E. I. Pyott.
About 60 employees have been offered early retirement packages at the Irvine maker of pharmaceutical products. Other details of the restructuring won’t be made public until September, said company spokesman Ryan Abbate.
The company reported that second-quarter net income rose to $34.8 million, or 52 cents a share, from $21.4 million, or 33 cents a share, for the 1997 third quarter. Sales increased 14% to $325 million from $284.5 million.
During the quarter, Allergan began a program of liquidating its common stock holdings in Ligand Pharmaceuticals Inc., which resulted in a pretax gain of $5.5 million.
Allergan also incurred approximately $7 million in pretax, one-time costs to terminate operations in certain markets, streamline marketing staffs and initiate a realignment of certain administrative functions.
For the six months, Allergan lost $87.4 million, or $1.34 a share, contrasted with a year-earlier net profit of $39.2 million, or 59 cents a share.
Sales rose 10%, to $594.3 million from $540.7 million.