Allergan price target lowered to $181 on Botox biosimilar at Morgan Stanley
Morgan Stanley analyst David Risinger lowered his price target on Allergan (AGN) to $181 from $200 following the news that Mylan (MYL) and Revance (RVNC) plan to develop a biosimilar Botox. While a potential biosimilar launch is likely several years away, the news is a "perception negative" that puts a long-term overhang on the durability of Allergan's most important franchise, said Risinger, who keeps his Overweight rating on Allergan shares.
Mylan/Revance a credible longer-term biosimilar Botox threat, says Credit Suisse
Credit Suisse analyst Vamil Divan says that he believed that a couple quarters of solid execution, along with positive pipeline news, could help Allergan (AGN) stock start to recover, but it now seems unlikely. The analyst sees a collaboration between Mylan (MYL) and Revance (RVNC) as a credible longer-term biosimilar Botox threat, and believes it creates another legitimate overhang to add to prior concerns around risks to Allergan's flagship Botox franchise. Additionally, Divan argues that the extension of Esmya review raises specter of possible regulatory rejection. He reiterates an Outperform rating and $215 price target on Allergan's shares.
Mylan, Revance collaboration bad news for Allergan, says Wells Fargo
Wells Fargo analyst David Maris notes that Revance (RVNC) and Mylan (MYL) announced they are collaborating on a biosimilar Botox, which he sees as clearly bad headlines news for Allergan (AGN). The analyst says this seems an "odd move" by Revance which is also developing what it hopes to be a long-acting Botox-like product. For Allergan, it is unwanted noise around another key franchise, he contends, adding that while the news is more of a corporate rivalry and less a near -term commercial threat, it is likely to be another overhang for the shares.
Biosimilar to Allergan's Botox has 'very long road,' says JPMorgan
The collaboration between Revance (RVNC) and Mylan (MYL) to develop a biosimilar Botox does not help sentiment on Allergan (AGN) shares, JPMorgan analyst Chris Schott tells investors in a research note. The analyst, however, sees a "very long road" to actual biosimilar Botox competition. Further, he adds that if competition emerges, the impact to Botox is likely to be fairly modest given the product's cash pay dynamics and entrenched market position. Schott sees the Botox franchise and broader aesthetics portfolio as a "significant growth driver" for Allergan and notes the Revance, Mylan announcement does not shift his view on the story. He believes the recent share weakness in Allergan is "very much overdone" and keeps an Overweight rating on the name.
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