Favorable Ruling for Allergan - Analyst Blog
29 Janvier 2013 - 7:50PM
Zacks
Allergan (AGN) received some positive news when
the US Court of Appeals for the Federal Circuit ruled in its favor
and found that ‘819 patent protecting its product, Lumigan is not
invalid. Lumigan is indicated to reduce intraocular pressure (IOP)
in patients suffering from ocular hypertension or glaucoma.
A couple of companies have challenged the Lumigan patent and
have filed marketing application for approval of their generic
version of Lumigan. Allergan expects the product to generate sales
of $600–$620 million in 2012.
We note that quite a few products in Allergan’s portfolio are
facing patent challenges. To counter the generic threat, the
company has been active on the acquisition front.
A few days back, Allergan inked a deal with MAP
Pharmaceuticals, Inc. (MAPP) to acquire the latter. As per
the terms of the deal, Allergan will acquire all the shares of MAP
Pharmaceuticals for $25.00 per share. The offer price represents
premium of 60% over MAP Pharmaceuticals’ closing price on Jan 22,
2012.
The deal is expected to be worth approximately $958 million. The
transaction, which has been cleared by the boards of directors of
both companies, is expected to close either towards the end of the
first quarter or in the second quarter of 2013.
Earlier this month, Allergan received a major boost with the US
Food and Drug Administration (FDA) approving Botox
(onabotulinumtoxinA) for the treatment of patients suffering from
overactive bladder (OAB) with symptoms of urge urinary
incontinence, urgency and frequency.
Although, we view the approval of Botox for the treatment for
OAB as a major positive for Allergan, we remain concerned about
Botox’s sales post the re-entry of Merz Pharmaceuticals Xeomin in
the market. In Mar 2012, an injunction against Xeomin was issued,
which was valid till Jan 9, 2013.
Allergan carries a Zacks Rank #3 (Hold) in the short run. Pharma
companies that currently look better-positioned include Eli
Lilly (LLY) and Sanofi (SNY). Both are
Zacks Rank #2 (Buy) stocks.
ALLERGAN INC (AGN): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
MAP PHARMACEUT (MAPP): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
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