By Zacks Equity Research, Zacks.com
June 26, 2017
We issued an updated research report on Allergan plc AGN on Jun 23.
Acquisitions form an integral part of Allergan’s expansion strategy. Allergan is reshaping its portfolio through strategic acquisitions. With the Allergan, Inc. acquisition, the company finds itself among the top 10 pharma companies worldwide based on sales. Last year, Allergan sold its generics business and the Anda distribution business to Teva Pharmaceutical Industries Limited TEVA . With the closing of the Teva deal, Allergan has become a “branded biopharmaceutical leader”. As a result, it can now focus on the branded segment and is using the proceeds to buy back shares, pay down debt and pursue additional deals.
In 2017 so far, through the accretive acquisitions of LifeCell and ZELTIQ, Allergan has expanded its medical aesthetics business into regenerative medicine and body sculpting, respectively. Allergan made a string of buyouts last year as well.
Meanwhile, key products like Botox and Linzess and new products like Viberzi and Vraylar backed by strong demand are supporting sales growth.
Allergan also boasts a strong pipeline with nine product launches planned in 2017. In 2016, Allergan launched over 10 new products, including, Vraylar, Viberzi, Kybella, and Namzaric. This year, Allergan is extending its R&D pipeline to adjacent categories like NASH, Parkinson’s disease, and gene therapy with many promising phase II/III programs in development.