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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.

Latest Ratings for AGN

Oct 2015Mizuho SecuritiesInitiates Coverage onBuy
Sep 2015NomuraInitiates Coverage onBuy
Sep 2015Raymond JamesMaintainsOutperform

View More Analyst Ratings for AGN
View the Latest Analyst Ratings

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


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