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Allergan plc (AGN)

  • Mon, Nov. 23, 7:48 AM
    • It's official. Pfizer (NYSE:PFE) and Allergan (NYSE:AGN) agree to merge in a $160B deal, the largest inversion transaction on record. AGN shareholders will receive 11.3 shares of the combined company for each AGN share while PFE shareholders will receive one share of the combined firm for each PFE share. The deal should close in H2 2016. After the merger, the company will do business as "Pfizer plc" and trade under the "PFE" symbol. It will be domiciled in Ireland (pro forma adjusted effective tax rate expected to be 17 - 18%).
    • Pfizer shareholders will own ~56% of the combined firm while Allergan shareholders will own ~44%. Pfizer chief Ian Read will be Chairman & CEO while Allergan chief Brent Saunders will be President & COO.
    • The merger should be neutral to Pfizer's non-GAAP EPS in 2017, accretive in 2018, more than 10% accretive in 2019 and accretive in the high teens in 2020. Operating cash flow should exceed $25B beginning in 2018.
    • The company will make a decision on splitting its innovative and established businesses no later than the end of 2018.
    • Separately, Pfizer will execute a $5B share repurchase program in H1 2016. It has ~$5.4B remaining on its previously announced buyback plan.
    • Pfizer will host a conference call this morning at 8:30 am ET to discuss the transaction.
    • Slide presentation 
    | Mon, Nov. 23, 7:48 AM | 59 Comments
  • Sun, Nov. 22, 8:23 PM
    • In what would be the largest "inversion" deal ever, the boards of Pfizer (NYSE:PFE) and Allergan (NYSE:AGN) have agreed to merge, reports the WSJ, with an official announcement perhaps coming tomorrow.
    • The deal, of course, comes days after Treasury issued new rules aimed at curbing such deals, but analysts say the new measures don't put this particular merger at risk. Global antitrust regulators will be sure and have their say, though.
    • Pfizer CEO Ian Read - an outspoken critic of high U.S. corporate tax rates - will lead the combined company, says the Journal, with Allergan CEO Brent Saunders serving as president and COO.
    • The final terms would have Allergan shareholders receiving 11.3 Pfizer shares for each share of AGN they own, say sources, and there's also a small cash component. Pfizer closed Friday at $32.18, making just the stock portion worth $363.63 vs. Allergan's close of $312.84.
    • The companies are planning for seven to nine months before closing. The combined entity is then expected to evaluate splitting into two businesses - one focused on patent-protected products and the other on drugs that have already lost it (or are close to).
    • Previously: Pfizer said to be near deal to buy Allergan for as much as $380/share (Nov. 18)
    • Previously: Will the new inversion rules derail a Pfizer-Allergan deal? (Nov. 20)
    | Sun, Nov. 22, 8:23 PM | 87 Comments
  • Wed, Nov. 18, 5:06 PM
    • The U.S. Treasury Department will announce new tax rules this week to discourage, if not outright ban, tax inversion deals. In a letter to Congress, Treasury Secretary Jack Lew promises "targeted guidance."
    • Ireland-domiciled Allergan (NYSE:AGN) is off 4% after hours on increased volume on the perception that potential suitor Pfizer (NYSE:PFE) may get cold feet for a deal if the tax advantages are taken away.
    | Wed, Nov. 18, 5:06 PM | 30 Comments
  • Thu, Oct. 29, 9:13 AM
    | Thu, Oct. 29, 9:13 AM | Comment!
  • Thu, Oct. 29, 8:44 AM
    • Results from a Phase 2 clinical trial evaluating Revance Therapeutics' (NASDAQ:RVNC) injectable RT002 against placebo and Allergan's (NYSE:AGN) BOTOX Cosmetic showed RT002's superiority in treating glabellar lines (frown lines). The 268-subject study assessed the safety, efficacy and duration of effect for three doses (20, 40 and 60 units) of RT002, a botulinum toxin A drug candidate.
    • At week 4, the primary efficacy measurement of at least a one-point improvement in frown lines based on the IGA-FWS scale for all three doses of RT002 was highly statistically significant compared to placebo (p<0.001). All three doses of RT002 achieved a 100% response rate (minimum of one-point improvement in frown lines) at week 4 versus 95% for BOTOX Cosmetic.
    • The 40U dose of RT002 was statistically superior to BOTOX Cosmetic on all three responder definitions for the IGS-FSW duration of effect, with a median duration of 23.6 weeks compared to 18.8 weeks for BOTOX Cosmetic (p=0.020).
    • At week 16, more than twice as many participants receiving RT002 40U and 60U maintained none or mild wrinkles per the IGA-FWS scale compared to those receiving BOTOX Cosmetic (p=0.002).
    • RTOO2 was safe and well-tolerated across all cohorts.
    • The company intends to report final results and meet with the FDA in H2 2016. A Phase 3 is expected to commence shortly thereafter. Revance believes the data will support a six-month duration of effect claim.
    • Shares are up 58% premarket on robust volume.
    | Thu, Oct. 29, 8:44 AM | 6 Comments
  • Thu, Oct. 29, 6:31 AM
    • Allergan (NYSE:AGN) is up 15% premarket on light volume on the news that it is in talks with Pfizer (NYSE:PFE) about a possible merger. If the deal goes through, it would create the world's largest healthcare firm with a market value of $330B, larger than Johnson & Johnson's (NYSE:JNJ) market cap of $278B.
    • A lower tax bill is one of the reasons Allergan is an attractive target for Pfizer considering the Botox maker is domiciled in tax-friendly Dublin. The U.S. government clamped down on tax inversion deals last year which scuppered the AbbVie/Shire deal so it is unclear how this might effect Pfizer's ability to change its domicile.
    • Potential Pfizer takeover targets GlaxoSmithKline (NYSE:GSK) and Shire (NASDAQ:SHPG) are both down slightly in premarket trading.
    • Update: Both Pfizer and Allergan confirm the commencement of "friendly" discussions regarding a potential combination.
    | Thu, Oct. 29, 6:31 AM | 14 Comments
  • Wed, Oct. 21, 1:22 PM
    • As if anyone following biotechs needs reminding, sellers are overwhelming the space. The iShares Nasdaq Biotechnology ETF (IBB -2.8%) is down 6% since Monday.
    • Key tickers: (BIB -6.5%)(BIS +6.3%)(VRX -38.5%)(AGN -5.9%)(BIIB -0.1%)(AMGN -1.7%)(GILD -1%)(CELG -2%)
    | Wed, Oct. 21, 1:22 PM | 66 Comments
  • Wed, Oct. 21, 12:27 PM
    • In a quick response to Valeant's (VRX -27.4%) mess regarding routing business through specialty pharmacies, Allergan (AGN -3.9%) says in a statement that it does not rely on this method for distributing its products. About 3% of the sales of branded products are sold through unaffiliated specialty pharmacies, the majority of which are BOTOX Therapeutic and ZENPEP.
    • Its Anda Distribution business is through a traditional pharmaceutical wholesaler with no specialty pharmacy capabilities or licensing.
    • Trading in AGN has resumed after a brief halt.
    | Wed, Oct. 21, 12:27 PM | 2 Comments
  • Tue, Oct. 13, 3:49 PM
    • Getting out in front of what should be more bashing of their business models at the Democratic debate tonight, the healthcare names (XLV -1.3%) have about doubled the decline in the S&P 500. Within healthcare, it's the biotechs (IBB -3.1%) and pharmaceuticals (XPH -3.2%) leading the way south.
    • Celgene (CELG -3.3%), Biogen (BIIB -3.6%), Amgen (AMGN -3.5%), Allergan (AGN -4.1%), Mylan (MYL -3.6%)
    • The biotech heavy Russell 2000 (IWM -1.4%) is feeling the pain as well.
    | Tue, Oct. 13, 3:49 PM | 27 Comments
  • Wed, Sep. 30, 12:49 PM
    • Bruised and battered biotech investors get some welcome buying today as bargain hunters open their wallets. The iShares Nasdaq Biotech Index Fund (IBB +2%) is up nicely, albeit on average volume.
    • Key tickers: (AMGN +1.6%)(BIIB +2.5%)(GILD +1%)(CELG +0.7%)(DEPO +12.4%)(HZNP +8.6%)(NVO +0.7%)(AGN +4.9%)(VRX +6.4%)(REGN +0.9%)(TEVA +2%)(SHPG +2.6%)
    | Wed, Sep. 30, 12:49 PM | 26 Comments
  • Fri, Sep. 25, 3:07 PM
    | Fri, Sep. 25, 3:07 PM | 134 Comments
  • Thu, Sep. 10, 1:05 PM
    • Thinly traded ZS Pharma (ZSPH +11.7%) is up on a 5x surge in volume as traders take positions hoping for good news, like being acquired. The bullishness was stoked when the company canceled its presentation and one-on-one meetings at a Citi investor conference and has not returned calls regarding the reason.
    • Bulls cite the similarity to Kythera, which canceled an appearance at a conference several months ago and announced its takeover by Allergan (AGN) shortly thereafter.
    | Thu, Sep. 10, 1:05 PM | 3 Comments
  • Thu, Sep. 10, 7:26 AM
    • Apricus Biosciences (NASDAQ:APRI) licenses the U.S. development and commercialization rights to Vitaros from Allergan (NYSE:AGN). Under the terms of the agreement, Apricus has exclusive rights to develop and commercialize the product in the U.S. in exchange for a $1M upfront payment and a future $1.5M milestone payment.
    • Upon the FDA's acceptance of the NDA, Allergan has a one-time opt-in right to take over the commercialization of Vitaros. If it elects to do so, Apricus will receive a total of $25M in upfront and milestone payments and double-digit royalties on net sales. If Allergan elects not to exercise its opt-in right, Apricus will commercialize Vitaros and pay Allergan double-digit royalties on net sales. Allergan retains the right to launch a generic version of Vitaros in the future.
    • Apricus licensed the U.S. rights to Vitaros to Warner Chilcott on February 3, 2009. Actavis completed its acquisition of Warner on October 1, 2013 and its acquisition of Allergan on March 17 of this year.
    • Vitaros, currently cleared in the EU and Canada, is a topical cream for the treatment of erectile dysfunction (ED). The U.S. is the largest ED market at over $3B per year. About 150M men worldwide suffer from ED.
    • APRI is up 28% premarket on increased volume.
    | Thu, Sep. 10, 7:26 AM | 2 Comments
  • Mon, Jul. 27, 9:14 AM
    | Mon, Jul. 27, 9:14 AM | 2 Comments
  • Mon, Jul. 27, 7:09 AM
    • Mylan (NASDAQ:MYL) drops 12% premarket on increased volume in response to Teva's (NYSE:TEVA) $40.5B deal for Allergan's (NYSE:AGN) generics business, dashing investors' hopes that it would pursue its hostile bid for Mylan.
    • In a statement, Mylan reaffirms its interest in Perrigo. A vote on the combination by Mylan shareholders is expected to happen in the next few weeks.
    | Mon, Jul. 27, 7:09 AM | 3 Comments
  • Thu, May 21, 10:58 AM
    • Thinly traded nano cap Intellipharmaceutics (IPCI +17.3%) heads north on a 10x surge in volume in response to its announcement that the FDA may not require a Phase 3 study for its abuse-deterrent opioid candidate, Rexista Oxycodone XR, if bioequivalence to Purdue Pharma's Oxycontin is demonstrated. The company believes that its previously completed Phase 1 trials fulfill this criterion.
    • The firm intends to file its New Drug Application (NDA) within the next 6 - 12 months. Approval is not guaranteed, however. After reviewing the data, the FDA may still require further studies.
    • Rexista Oxycodone XR's formulation deters abuse by instantaneously coagulating and entrapping the drug in a viscous hydrogel when pulverized and hydrated. It is also designed to prevent dose dumping if taken with alcohol.
    • Related tickers: (PTIE -1.9%)(DRRX)(COLL +1.9%)(ZGNX)(MNK -0.3%)(ACT +1.1%)(TEVA +1.6%)(ABBV -0.7%)(LCI -0.7%)(ALKS -1%)(EGLT -0.1%)(PFE -0.2%)(ACUR -2.4%)
    | Thu, May 21, 10:58 AM | 12 Comments
Company Description
Allergan PLC is a specialty pharmaceutical company. The Company is engaged in developing, manufacturing and distributing generic, brand and biosimilar products.