Allergan’s (AGN) stock has been white hot over the past few months. The stock is up nearly 12% year-to-date due to better than expected Q2 2018 results and attention from the “smart money.” Activist investors Carl Icahn and David Tepper of Appaloosa have been extremely vocal about Allergan’s prospects. In June Tepper sent a letter to Allergan criticizing the company’s weak attempts to create share hold value, and asking for a board shake up. Icahn also disclosed a small stake in AGN.
AGN is up over 20% since June on a few bombastic press releases from Tepper and Icahn, yet I doubt its fundamentals have improved. Allergan’s Q2 2018 revenue was up only 3% Y/Y. Competition for Botox and Restasis – Allergan’s top-selling products – could come from Evolus and Sun Pharma, respectively. That could further stymie Allergan.
Prospects for Endo, on the other hand, are looking up. Shocking The Street previously intimated a key drug could make ENDP a 4-bagger. A top Wall Street analyst is also bullish on ENDP. She believes Allergan could approach Endo to get access to that drug. Read more:
