Citi Reviews Allergan 1Q11

Allergan Inc. AGN increased its workforce by 300 to 9,500 in 1Q11 after a +900 increase in 2010, Citi reports. “We assume most of the increase came from ex-US markets where AGN is expanding its operations in both eye care & aesthetics,” Citi writes. “On its 1Q11 call AGN indicated that it expects to grow its EM share of total sales from 15% in 2010 (~$700M) to 25%-30% in ~2015E (~$1.6B-$2.3B). “In May, AGN acquired direct operations from its partner, Genop, in South Africa, following similar recent direct operation acquisitions in Turkey, Poland & Philippines. AGN also reacquired Botox Cosmetic rights from GSK in Japan/China in ‘10. Our est's. reflect heavy SG&A investment (+7% '10-‘13E CAGR) to accelerate top-line growth (+10%).” Allergan closed Friday at $80.70.