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Botox is feeling the effects of slowing economy

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David PyottEven Botox is getting hit by the economic slowdown in the United States, says David Pyott, chief executive of Allergan, which makes it.

Previous reports had suggested that cost-conscious consumers had backed away from plastic surgery but were continuing to get Botox injections to combat wrinkles.

In reporting its first-quarter financial results, the Irvine-based company said worldwide 12-month sales growth of Botox slowed to 18 percent, down from 24 percent in the fourth quarter. Excluding the effects of the falling dollar, that first-month increase was 13.5 percent worldwide, the company said.

“All of the slowdown in growth rate is attributable to the United States,” Pyott said in a conference call about the financial report. “It appears that the U.S. slowdown is a reflection of weak consumer spending behavior.”

The economy has had the greatest effect on sales of breast implants, Pyott said. Other products affected, he said, are “secondly, probably fillers and thirdly Botox.”

Analyst Larry Biegelsen of Wachovia Capital Markets estimated that Botox revenues in the United States grew 10 percent in the 12 months leading up to the first quarter, compared to more than 20 percent a year earlier.

These are Allergan’s figures for 12-month sales growth worldwide, excluding currency adjustments:

  • Lap-Band obesity intervention, up 31.9 percent.
  • Dermal fillers and other facial aesthetics, up 16.3 percent.
  • Breast implants, up 8.5 percent.
  • Botox, up 13.5 percent

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Botox is feeling the effects of slowing economy is a post from: In Your Face


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