UPDATE: Deutsche Bank Downgrades Allergan to Hold, Lowers PT Following FDA Draft Guidance

In a report published Monday, Deutsche Bank analyst David M. Steinberg downgraded the rating on

from Buy to Hold, and lowered the price target from $113.00 to $98.00. In the report, Deutsche Bank noted, “Friday, the FDA issued draft guidance for a non-clinical study pathway for generics to Restasis, AGN's 2nd largest drug (~14% of revs) with 2015E sales of $1B+. Uniform consensus has been that despite its pending patent expiry in 2014 there would be no generics for the foreseeable future. A pillar of AGN's investment profile has been expectations of minimal to no generic risk – a key reason for its premium (and very well deserved) multiple. In our opinion, this surprising change at the FDA materially changes the risk profile. And over the next 12-18 months, we fear it will create an ‘overhang' on the shares. While AGN remains the premier co in the sector, we lower our rating from Buy to Hold.” Allergan closed on Friday at $92.70.