Allergan shares fell the most in 21 months after sales of Botox missed analysts’ estimates.
Allergan declined 3.89 (4.03%) to $92.50 on the New York Stock Exchange after first-quarter sales of Botox rose to $398.9m, less than the $411.6m average of two analyst estimates compiled by Bloomberg. The US-based company also provided a second-quarter profit forecast of $1.04 to $1.06 a share, less than the $1.08 analysts expected.
Allergan has been trying to expand use of Botox for treating migraines as the product faces more competition from other wrinkle treatments.
Allergan is known for beating estimates so some investors are fleeing, said Gary Nachman, an analyst with Susquehanna Financial Group in New York.
“It was a good quarter, but not the kind that people have gotten accustomed to,” said Mr Nachman. “I don’t think there is anything major going on here, but there are some questions they need to answer.”
“When you get something with that kind of valuation even a small misstep causes the borderline money to walk away,” said Ronny Gal, an analyst with Sanford C Bernstein & Co.
First-quarter earnings excluding one-time items were 86c a share, 1c short of the average estimate of 23 analysts surveyed by Bloomberg.
Allergan employs over 800 people in Westport where it manufactures and develops a range of medical devices and pharmaceutical products, the best known of which is botox.