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Morgan Stanley Maintainson Allergan, Changes PT

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In a report published Wednesday, Morgan Stanley analyst Thomas Chiu maintained an Equal-weight rating on Allergan (NYSE: AGN), changing its price target from $94.00 to NA as they await pipeline newsflow and/or strategic action.

According to the report, positive District Court ruling on Lumigan patents plus new IP on Restasis de-risks AGN's near-to- intermediate term outlook.

“Mgmt. believes that FDA's response to the Citizen Petition will include clarity on whether or not a generic company previously filed an ANDA (generic application) on Restasis,” the report noted. “Assuming a 150 day review, we expect a response by mid-June. If a generic has already filed, we do not believe a 30 month stay will apply despite the issuance of the new patent. If generics file ANDAs in the future, the new patent will result in 30-month stays. While the strength of the new patent may be debatable, it could serve as a basis for a settlement that pushes out generics until later this decade by which time Restasis X could already be on the market (Phase II completes in November 2016).”

AGN closed Tuesday at $121.22 with shares trading up at 5.94 percent.

Posted-In: Morgan Stanley Thomas ChiuAnalyst Color Reiteration Analyst Ratings

 

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