Allergan (AGN): Survey Shows Strong Demand for Vralar But No Upgrade- Piper Jaffray
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Piper Jaffray analyst, David Amsellem, reiterated his Neutral rating on shares of Allergen (NYSE: AGN) after conducting a survey of 25 psychiatrists with the goal of gauging perceptions of Allergan’s Vraylar (cariprazine). Notably, the feedback suggests that many psychiatrists perceive at least a modest benefit for Vraylar in reducing negative symptoms associated with schizophrenia. More broadly, the feedback suggests that Vraylar prescription (Rx) volumes will grow significantly.
That said, the 2017E P/E and EV/EBITDA of 14x and 12x, are reflecting expectations for strong growth out of new launches (e.g., Vraylar, Viberzi). Despite the likely success of Vralar, the execution on the pipeline should be the main driver of value creation for the company. This leads the analyst to maintain his Neutral rating along with the price target of $227.
Shares of Allergen closed at $236.65 yesterday.
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