Allergan (AGN): Solid Pipeline Leaves Little Reliance On New Drugs - Leerink

Leerink Partners analyst, Jason Gerberry, reiterated his Outperform rating on shares of Allergan (NYSE: AGN) due to increased confidence in AGN's new product pipeline to deliver ~$4.6B in revenue by 2021E. The pipeline forecast is in line with consensus, but he is encouraged that the target can be met largely from clinically de-risked assets, leaving substantial upside if AGN's more speculative programs deliver.

Consensus pipeline forecasts are largely de-risked clinically. Within AGN's new product pipeline, we have the highest level of conviction that Viberzi, Kybella, and Esmya can be meaningful revenue contributors (~35% of our '21E pipeline sales) based on compelling product profiles.

Beyond the previously mentioned drugs, AGN has 6 pipeline drugs that that have been clinically de-risked but will likely be niche products contributing a combined $1.5B in 2016E revenues, including: oxymetazoline (rosacea; PDUFA 1H17), Semprana (migraine), Dalvance & AvyCaz (antibiotics). Finally, to meet or beat Street pipeline targets, he estimates that AGN only needs ~$1.3B in 2021E sales from 8 less clinically validate drugs which have the potential to launch 2017-20.

The firm reiterated an Outperform rating and lifted its price target to $294.00 (from $272.00).

For an analyst ratings summary and ratings history on Allergen click here. For more ratings news on Allergen click here.

Shares of Allergen closed at $248.95 yesterday.

You May Also Be Interested In

• Boston Scientific (BSX) PT Raised to $83 at Stifel
• Bernstein SocGen Group Upgrades CapCom Co Ltd. (9697:JP) (CCOEY) to Outperform
• Kering SA (KER:FP) (PPRUY) PT Lowered to EUR310 at Goldman Sachs