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Allergan Looks To Sell Women's Health, Infectious Disease Businesses

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Allergan Looks To Sell Women's Health, Infectious Disease Businesses
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Allergan plc (NYSE: AGN) has concluded its strategic review and now plans to sell its women’s health and infectious disease businesses, according to CNBC.

What Happened 

Allergan will redirect its focus to medical aesthetics and dermatology, ophthalmology, central nervous system and gastroenterology.

Shares initially fell 3 percent on the news but largely recovered by the time of publication Wednesday. 

Why It’s Important

Cowen recently valued Allergan’s women’s health segment at around $4 billion and infectious diseases at $2 billion. Their sale would leave behind a growing set of assets Barclays considers central to the bull thesis.

What’s Next

CNBC’s David Faber suggested prospective buyers may opt to wait on the women’s health business until an August target date for a candidate that's under regulatory review.

Faber additionally predicted the sale proceeds would support buybacks and debt reduction.

Related Links:

Cantor Fitzgerald: 18 Drug Companies With Catalysts Worth Watching 

CNBC: Allergan-Shire Deal Is DOA 

Posted-In: CNBC David FaberNews Health Care M&A Media General Best of Benzinga

 

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