Valeant And Allergan Are Not A Match Made In Heaven
Paul Nouri, CFP
Paul Nouri, CFP
Actavis Generics: A 2-Year Ticket To Insolvency?
Graham Osborn • 48 Comments
Graham Osborn • 48 Comments
The Preferred Way To Play The Allergan-Pfizer Break Up
Andrew Walker, CFA • 56 Comments
Andrew Walker, CFA • 56 Comments
Thu, Jul. 14, 5:09 PM
- Thinly traded micro cap Revance Therapeutics (NASDAQ:RVNC) slumps 6% after hours on higher-than-average volume in apparent response to its announcement that it completed its Type B/pre-IND/pre-Phase 3 meeting with the FDA regarding the advancement of RT002 (daxibotulinumtoxinA for injection) for the treatment of glabellar (frown) lines. Clinical trials should commence in H2.
- The Phase 3 program will include two placebo-controlled pivotal studies in the U.S. and Canada. The primary endpoint will be a composite of the proportion of patients who achieve a score of 0 or 1 (none or mild) and a two-point improvement from baseline in glabellar line severity at maximum contraction at week 4. The program will also include a long-term open-label safety study. The prospective timeline appears to have disappointed investors.
- In a Phase 2 trial, RT002 beat Allergan's (NYSE:AGN) BOTOX Cosmetic.
- Previously: Revance's RT002 beats BOTOX in mid-stage study; shares up 58% premarket (Oct. 29, 2015)
Wed, Jul. 13, 9:11 AM
- Teva's (NYSE:TEVA) corporate presentation this morning has perked up investors. Shares are up 3% premarket on robust volume.
- CEO Erez Vigodman said that there are no more hurdles standing in the way of is acquisition of Actavis Generics (NYSE:AGN). The OK by the SEC is apparently imminent.
- In this morning's call, Mr. Vigodman highlighted the benefits of the transaction, including an expected $1.4B in cost synergies and tax savings by the end of 2019. Other pluses by the end of 2019 are: accretion in non-GAAP EPS of 19%, more than $25B in cumulative free cash flow and a return on invested capital of 9.3%.
- Revenue is expected to increase from 19.7B in 2015 to $26.7B - 27.8B in 2019 (9% CAGR based on the midpoint). EBITDA should grow from 6.6B to $10.7B - 11.5B (14% CAGR). Net income is also expected to deliver a CAGR of 14%($5.42B to $7.5B - 8.1B). CAGR of free cash flow is expected to be 11% ($4.9B to $7.2B - 7.8B).
- Based on recent amendments with Allergan, Teva's net cost of the deal has dropped from $40.1B to $35.1B, reducing its net financing needs to $23B from $27B. It net debt at closing will be $34B instead of $38B. Based on expected free cash flow, Teva sees its net debt dropping to $12.7B by the end of 2019.
- In terms of FY2016 andFY2017, Actavis Generics' contribution to Net Income should be $1.8B and $1.9B, respectively.
- Q2 2016 outlook: non-GAAP EPS of $1.19 - 1.22 on revenues of $4.9B - 5.0B. for 2016: non-GAAP EPS of $5.20 - 5.40 on revenues of $$22.0B - 22.5B.
- 2019 outlook for operating income is $10.0B - 10.8B and CF Ops $8.0B - 8.8B.
Mon, Jun. 27, 7:13 PM
- Australia's Mayne Pharma Group (OTCPK:MAYNF -6.8%) is close to a deal worth about $600M to buy assets from Teva Pharmarceuticals (TEVA -3%), Reuters reports.
- The move is one of a few required of Teva for it to gain FTC approval for a $40B acquisition of Allergan's (NYSE:AGN) generic drugs portfolio. That OK could come as soon as early next month and solidify Teva's position as a generic drugs leader.
- Teva's U.S. asset divestitures would come to about $2B in total, a source said. European divestitures, including a UK/Irish generics business expected to be worth more than $1.3B, should wrap by this fall.
Fri, Jun. 24, 10:25 AM
- Intrepid biotech investors are, no doubt, seriously considering deploying some cash today in response to the (hopefully temporary) bearish reaction to the Brexit vote. Nasdaq is currently down 2.7%, the Dow 2.2% and the IBB 3.3%.
- Representative tickers: (GILD -2.2%)(GSK -2.4%)(AZN -2.7%)(PFE -1.1%)(MRK -1.9%)(CELG -3.2%)(BMY -2%)(BIIB -2.4%)(AMGN -2.7%)(AGN -2.8%)(TEVA -0.8%)(ABT -3.4%)(MDT -1.4%)
Wed, Jun. 8, 4:23 PM
- Nano cap Orexigen Therapeutics (NASDAQ:OREX) was up 52% today on a 6x surge in volume in response to its announcement of a favorable Markman ruling related to the company and Takeda's (OTCPK:TKPHF)(OTCPK:TKPYY) Contrave patent infringement litigation against Actavis (NYSE:AGN).
- A Markman or claims construction ruling, is a pretrial hearing in which a judge determines the meaning of the disputed patent claims in patent litigation. In this case, Judge Richard Andrews adopted Orexigen's proposed constructions for the majority of the disputed claims, a big win for the company and making it significantly more difficult for Actavis to prevail.
Tue, May 31, 10:12 AM
Tue, May 10, 8:23 AM
- Allergan (NYSE:AGN) Q1 results ($M): Total Revenues: 3,795.9 (+48.1%); Net Income: 255.7 (+149.9%); Non-GAAP Net Income: 1,269.0 (+60.7%); EPS: 0.47 (+125.4%); Non-GAAP EPS: 3.04 (+14.7%); CF Ops: 1,218.5 (+132.1%). Consensus: EPS of $3.01 on revenues of $3.95B.
- U.S. Brands: Net Revenues: 2,302.7 (+27.3%); Central Nervous System: 554.3 (+1.2%); Eye Care: 533.0 (+462.8%); Gastroenterology: 403.6 (+10.1%); Women's Health: 263.7 (+15.0%); Urology: 74.1 (+98.7%); Infectious Disease: 51.5 (+22.9%).
- U.S. Medical Aesthetics: 449.7 (+463.5%); Facial Aesthetics: 279.4 (+693.8%); Medical Dermatology & Other: 122.2 (+300.7%); Plastic Surgery: 48.1 (+241.1%).
- Key Product Sales: Botox: 637.5 (+658.9%); Fillers: 214.7 (+772.8%); Namenda XR: 173.1 (+14.9%); Lumigan/Ganfort: 169.6 (+700.0%); Bystolic: 164.0 (0.0%); Linzess/Constella: 140.9 (+46.5%).
- 2016 Guidance: Non-GAAP Net Revenues: ~$17B; Non-GAAP R&D Investment: ~$1.5B; SG&A: ~25% of Non-GAAP Net Revenues; Non-GAAP Tax Rate: ~14%.
- Q2 Consensus: EPS of $3.40 on revenues of $4.17B.
Tue, May 10, 7:33 AM
Fri, May 6, 10:58 AM
- Thinly traded micro cap Cardiome Pharma (CRME +27.5%) is up on an 8x surge in volume, albeit on turnover of only 290K shares, in response to its announcement that it has inked a deal with an affiliate of Allergan (AGN -4.5%) (Actavis, presumably) for the commercialization rights to antibiotic XYDALBA (dalbavancin) in France, the U.K., Germany, Belgium, Nordic countries, certain countries in the Middle East, Canada and unnamed others. XYDALBA was approved in May 2014 in the EU for the treatment of Acute Bacterial Skin and Skin Structure Infections (ABSSSIs).
- Under the terms of the deal, Cardiome will pay Allergan a staggered upfront fee of $13M, milestones and royalties. Additional terms are not disclosed.
- Cardiome intends to launch XYDALBA in its territories this year.
- Related ticker: (TEVA -6.2%)
Fri, Apr. 15, 3:44 PM
- Allergan (NYSE:AGN) is the purported suitor.
- SGYP +6.5%
- Now read: Why The Termination Of The Allergan-Pfizer Deal Isn't Too Bad After All (April 6)
Wed, Apr. 6, 7:46 PM
- Moving on from a broken merger, Allergan (AGN +3.6%) says it's formed a global R&D and commercialization partnership with Heptares Therapeutics (OTCPK:SOLTF) to pursue novel treatments for neurological disorders.
- Allergan will issue an up-front payment of $125M, and Heptares is eligible for milestone payments of up to $665M contingent on successful Phase 1, 2 and 3 development and launch of the first three licensed compounds for multiple indications, along with royalties and up to $2.5B tied to sales thresholds.
- The two will work to develop and commercialize small molecule agonists targeting muscarinic receptors in the brain, to address Alzheimer's and related disorders.
- Now read The Allergan-Pfizer Merger Is Now Dead, But Allergan Isn't »
Wed, Apr. 6, 7:26 AM
- Although disheartened that its merger with Pfizer (NYSE:PFE) is dead, Allergan (NYSE:AGN) is bullish on its standalone profile. CEO Brent Saunders says, "While we are disappointed that the Pfizer transaction will no longer mover forward, Allergan is poised to deliver strong, sustainable growth built of a set of powerful attributes. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late-stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone."
- Based on a preliminary review of the proposed regulations from the U.S. Treasury Department, the company believes they will not have a material impact on its standalone tax rate. Q1 earnings will be reported no later than May 10. During the conference call, management will update investors on its plans to simplify the company's operations after it divests its generics business to (NYSE:TEVA).
- Allergan will host a brief conference call this morning at 10:00 am ET to discuss its standalone prospects.
- Pfizer says it will make a decision on splitting the company's innovative and established businesses by the end of the year. It will report Q1 results on May 3. It has agreed to reimburse Allergan $150M for merger-related expenses.
- PFE is up 1% and AGN is down 1% premarket.
Tue, Apr. 5, 9:17 PM
- Pfizer (PFE +2.2%) and Allergan (AGN -15%) are set to mutually terminate their merger in the morning, David Faber reports in news that's not entirely unexpected.
- The change to tax inversion regulations gave the deal a "death blow," he says.
- Updated 9:46 p.m.: Pfizer will pay Allergan a $400M breakup fee in keeping with the companies' agreement.
- Previously: Pfizer mulling backing out of Allergan deal (Apr. 05 2016)
- Previously: Allergan -19% following Secretary Lew’s remarks on corporate tax inversions (Apr. 05 2016)
- Now read Pfizer Is A Winner With Or Without Allergan »
Tue, Apr. 5, 1:46 PM
- According to sources, Reuters reports that Pfizer (PFE +3.2%) is leaning toward abandoning the Allergan (AGN -16.4%) deal if the tax benefits are not there.
- Previously: Allergan -19% following Secretary Lew’s remarks on corporate tax inversions (April 5)
Tue, Apr. 5, 12:45 PM
Tue, Apr. 5, 9:16 AM
Allergan Plc operates as an investment holding company. It is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand, brand generic, over-the-counter and biosimilar products. The company operates through the following segments:... More
Industry: Drug Manufacturers - Other
Country: United States
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