Weitz Funds Comments on Allergan
- By Holly LaFon
Allergan (AGN) is a global specialty pharmaceutical company focusing on the development, manufacturing, marketing and distribution of generic, brand name, biosimilar and over-the-counter (OTC) pharmaceutical products. The dissolution of Allergan's merger with Pfizer in April, delays in gaining Federal Trade Commission approval for the sale of its global generics business to TEVA and broader industry concern around prescription drug prices combined to push Allergan's stock down by 26% during the first half of the calendar year. As we wrote in January, we like the stand-alone Allergan business without the generics business and believe the $ 40 billion sale to TEVA should soon close. There are a number of signs that growth in Allergan's aesthetics franchise is accelerating, and the company's key product launches - VIBERZI, VRAYLAR and KYBELLA - appear to be off to healthy starts. The combination of healthy organic growth, debt reduction and meaningful share repurchases should drive per share value creation over our investment horizon. We substantially increased the Fund's Allergan position during the second quarter at attractive discounts to our business value estimate.
Warning! GuruFocus has detected 5 Warning Signs with AGN. Click here to check it out.
The intrinsic value of AGN
From Weitz Value Fund's Value second quarter 2016 commentary.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with AGN. Click here to check it out.
The intrinsic value of AGN
