IRVINE, Calif. (AP) -- Cosmetic drug and device maker Allergan Inc.'s fourth-quarter earnings climbed 6 percent, as sales for key products like Botox helped balance expense increases.
But the Irvine, Calif. company also forecast earnings for the first quarter and full year of 2012 that fell below analyst expectations, and Allergan shares dropped in afternoon trading.
Sales of Botox, an anti-wrinkle injection, grew more than 7 percent to $415.3 million in the final quarter of 2010.
The drug has received approval for several new uses in the past year. In the quarter, Canadian regulators approved it as a treatment for chronic migraines and for urinary incontinence.
Botox has long been approved for a half-dozen other uses, most famously for removing wrinkles on the forehead, but also muscle spasms and eyelid twitching. The injectable form of the toxin that causes botulism poisoning works by blocking the connections between nerves and muscle, temporarily paralyzing the muscle.
Overall, Allergan earned $279.8 million, or 90 cents per share, in the three months that ended Dec. 31. That compares to net income of $263.1 million, or 85 cents per share, in the final quarter of 2010. Adjusted earnings were $1 per share.
Revenue climbed 7 percent to $1.4 billion, as product sales rose to $1.38 billion from $1.29 billion.
Analysts surveyed by FactSet expected, on average, earnings of $1 per share on nearly $1.4 billion in sales.
Allergan's research and development and selling, general and administrative expenses rose a combined 7 percent to $778.3 million.
For the full year, Allergan earned $934.5 million, or $3.01 per share, on $5.42 billion in revenue.
The company expects adjusted earnings of between 84 cents and 86 cents per share for the first quarter of 2012 and $4.13 and $4.19 per share for the full year.
Analysts expect earnings of 91 cents per share for the quarter and $4.21 per share for the full year.
Allergan expects 2012 revenue of $5.65 billion to $5.85 billion, while analysts on average expect $5.89 billion.
Company shares fell 2.8 percent, or $2.46, to $84.83 in afternoon trading, while broader trading indexes dropped slightly.
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