Morgan Stanley Says Allergan Management is Still Optimistic

In a report published Tuesday, Morgan Stanley analyst David Risinger reiterated an Equal-Weight rating on Allergan AGN. In the report, Morgan Stanley noted, “Although consensus turned negative in 2013 on DARPin, mgmt is still hopeful that DARPin may offer greater durability (fewer injections per year) than Lucentis and potentially Eylea (and still yield similar efficacy). The key point is that the 2nd stage of Ph II that reported last year did NOT include dosing intervals to assess the duration of DARPin vs. Lucentis. But the 3rd stage, which will be reported in 2H:14, will evaluate duration of efficacy. The double-blind head-to-head study design is as follows: monthly injections of both DARPin and Lucentis at baseline, week 4, and wk 8. Then for weeks 12 and 16 the DARPin group will receive sham and Lucentis arm will receive Lucentis injections. Efficacy will be compared between groups at weeks 12, 16, and 20. This study should provide more clarity on how long DARPin lasts relative to Lucentis. Note that Lucentis is labeled for 1x/month dosing and Eylea is labeled for every two months.” Allergan closed on Monday at $122.96.