AGN

Allergan PLC

Healthcare, Event Driven/Special Sit


Presented:04/12/2016
Price:$222.57
Cap:$87.74B
Current Price:$193.02
Cap:$63.36B

Presented

Date04/12/2016
Price$222.57
Market Cap$87.74B
Ent Value$169.74B
P/E Ratio25.12x
Book Value$181.65
Div Yield0%
Shares O/S394.20M
Ave Daily Vol4,324,891
Short Int1.47%

Current

Price$193.02
Market Cap$63.36B
Allergan Plc engages in the research, development, and manufacture of pharmaceutical products. The firm offers products under the following brands: BOTOX, Juvederm, Linzess, Namenda, Restasis, Latisse, Teflaro, Lo Loestrin Fe, Bystolic, DORYX, Saphris, Fetzima, Namenda XR, Namzaric, Viberzi, Viibryd, Alphagan, LUMIGAN, ESTRACE Cream, Rapaflo, Asacol, DELZICOL, Zenpep, Avycaz, and Dalvance. Its brand portfolio delivers treatments that address unmet medical needs in therapeutic categories such as dermatology and aesthetics; central nervous system; eye care; women health and urology; gastroenterology and cystic fibrosis; and cardiovascular and infectious disease. The company was founded on October 1, 2012 and is headquartered in Dublin, Ireland.

Publicly traded companies mentioned herein: Allergan plc (AGN), AmerisourceBergen Corp (ABC), Endo International (ENDP), Pfizer Inc (PFE), Shire PLC (SHP LN / SHPG), Teva Pharmaceutical Industries Ltd (TEVA), Valeant Pharmaceuticals Intl Inc (VRX)

Highlights

The presenter said he thinks the risk/ reward and entry point are favorable at ~$225 per share for a short position in Allergan (AGN). His earnings estimates are below the consensus for Q1 and FY 2016, and now that the Pfizer deal is off the table investors are reassessing the situation. Unfavorable seasonal trends, overarching generic pricing deflation, and, in his view, a high probability that the $40.5 billion deal with Teva falls through underpin his bearish viewpoint. He was short the stock prior to the deal with Pfizer dissolving in the wake of the US Treasury’s release of regulations aimed at “further reducing the benefits of corporate tax inversions” (April 4, 2016), and has since added to his position as the outlook for the company appears to be cloudier than ever. Once investors sharpen their pencils on AGN models and dig into the performance of the portfolio, shares could decline meaningfully.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.