) received some positive news when the US Court of Appeals for
the Federal Circuit ruled in its favor and found that '819 patent
protecting its product, Lumigan is not invalid. Lumigan is
indicated to reduce intraocular pressure (IOP) in patients
suffering from ocular hypertension or glaucoma.
A couple of companies have challenged the Lumigan patent and
have filed marketing application for approval of their generic
version of Lumigan. Allergan expects the product to generate
sales of $600-$620 million in 2012.
We note that quite a few products in Allergan's portfolio are
facing patent challenges. To counter the generic threat, the
company has been active on the acquisition front.
A few days back, Allergan inked a deal with
MAP Pharmaceuticals, Inc.
) to acquire the latter. As per the terms of the deal, Allergan
will acquire all the shares of MAP Pharmaceuticals for $25.00 per
share. The offer price represents premium of 60% over MAP
Pharmaceuticals' closing price on Jan 22, 2012.
The deal is expected to be worth approximately $958 million.
The transaction, which has been cleared by the boards of
directors of both companies, is expected to close either towards
the end of the first quarter or in the second quarter of
Earlier this month, Allergan received a major boost with the
US Food and Drug Administration (FDA) approving Botox
(onabotulinumtoxinA) for the treatment of patients suffering from
overactive bladder (OAB) with symptoms of urge urinary
incontinence, urgency and frequency.
Although, we view the approval of Botox for the treatment for
OAB as a major positive for Allergan, we remain concerned about
Botox's sales post the re-entry of Merz Pharmaceuticals Xeomin in
the market. In Mar 2012, an injunction against Xeomin was issued,
which was valid till Jan 9, 2013.
Allergan carries a Zacks Rank #3 (Hold) in the short run.
Pharma companies that currently look better-positioned include
). Both are Zacks Rank #2 (Buy) stocks.
ALLERGAN INC (AGN): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
MAP PHARMACEUT (MAPP): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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