AGN - Allergan

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  1. Stockaholic

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    On February 18, 2015, the company formerly known as Actavis, Plc announced its intention to change its name to Allergan, Plc. (AGN) This was completed as of June 15, 2015. Actavis, Plc then became Actavis which now forms the US Generics division of the company.

    After the acquisition of Allergan, Inc by Actavis, Plc, the new company made its first acquisition on July 6, when the company acquired start-up, Oculeve, for $125 million. On July 7 the company announced it would acquire Merck & Cos late stage CGRP migraine portfolio, as well as two experimental drugs (MK-1602 and MK-8031) for $250 million. In July, Allergan agreed to sell off its small molecule generic drug business,Actavis, to Teva Pharmaceutical Industries for $40.5 billion ($33.75 billion in cash and $6.75 billion worth of shares), a transaction to be completed in Q1 2016. A day later, the company announced it would acquire Naurex Inc for $560 million with more tied to regulatory milestones. In September the company announced it would acquire ophthalmic device start-up AqueSys for $300 million plus future sums tied to approval/sales milestones. In November the company acquired aesthetic device company Northwood Medical Innovation. Two days after announcing the record breaking deal with Pfizer, the company announced it would partner with Rugen Therapeutics to develop new therapies for autism spectrum disorder and obsessive compulsive disorder.
     
    #1 Stockaholic, Mar 31, 2016
    Last edited by a moderator: Apr 16, 2016
  2. T0rm3nted

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    New U.S. inversion rules threaten Pfizer-Allergan deal

    The U.S. Treasury Department took new steps on Monday to curb tax-avoiding corporate "inversions," with the pending $160 billion merger of Pfizer Inc and Allergan Plc seen as a potential casualty.

    The changes, less than a year before President Barack Obama ends his term, follow sharp political criticism of Pfizer's and Allergan's merger, which would be the largest inversion deal ever. While the rules did not single out this deal, one of the provisions takes aim directly at it.

    Shares of Dublin-based Allergan fell 22 percent in after-market trading, while shares of New York-based Pfizer rose 3 percent.

    The companies said they were reviewing the Treasury Department's notice. "Prior to completing any review, we won't speculate on any potential impact,” the companies said in a joint statement.

    The federal government has grappled with a wave of inversions in recent years as U.S. companies have sought to slash their tax bills by redomiciling overseas, though their core operations and management usually remain in the United States even as they claim a new tax home. Several U.S. presidential candidates, including Republican Donald Trump and Democrat Hillary Clinton, have seized on the issue in their campaigns.

    Obama, a Democrat, has called repeatedly for action by the Republican-controlled U.S. Congress on inversions, but lawmakers have done little. He repeated his appeal to Congress on Monday and said he welcomed the Treasury's action.

    The Treasury said in a statement it will impose a three-year limit on foreign companies bulking up on U.S. assets to avoid ownership limits for a later inversion deal.

    "In simple words, Allergan's key deals in the prior 36 months won't be counted (as far as meeting the inversion threshold is concerned) when doing the ownership math for the Pfizer-Allergan deal," Evercore analyst Umer Raffat wrote in a note.

    These deals include the $66 billion merger of Allergan Plc and Actavis Plc, the $25 billion purchase of Forest Laboratories and the $5 billion takeover of Warner Chilcott.

    "The real issue is not so much what Allergan may prove or disprove, or whether Treasury overstepped its authority. The real question is whether Pfizer reads today's regulations as reason enough to not continue to pursue the deal," Raffat wrote.

    Under the agreement between Pfizer and Allergan, either party may terminate the deal if an adverse change in U.S. law would cause the combined company to be treated as a U.S. domestic corporation for federal income tax purposes. The terminating party would have to pay the other company up to $400 million for its expenses, according to the merger agreement.

    Treasury also said it is proposing rules to tackle a practice known as earnings stripping that is often undertaken following an inversion.

    Earnings stripping covers a range of financial dealings that shrink the taxable U.S. profits of multinationals. A common strategy is to load up the U.S. unit of a redomiciled foreign company with debt and then shift U.S. profits to the new lower-tax foreign jurisdiction through interest payments.

    The new Treasury rules would restrict related-party debt for U.S. subsidiaries in dealings that do not finance new investment in the United States. As part of these proposed regulations, the Internal Revenue Service would also be able to divide debt instruments into part debt and part equity, Treasury said.

    Treasury Secretary Jack Lew said the new actions would "further rein in" inversions, while he repeated his call that only legislation in Congress could prevent such deals.

    But at least one business group, the Organization for International Investment, which advocates for foreign-based companies, condemned the new rules.

    "Treasury’s action would increase the cost of investing and expanding across the United States for all foreign companies and put at risk more than 12 million American workers that are supported by foreign direct investment in the United States," Nancy McLemon, the group's chief executive, said in a statement.

    Such tax avoidance schemes have long been a thorn in Treasury's side. The proposed deal between Pfizer and Allergan, which would create the world's largest drugmaker, prompted renewed scrutiny.

    Pfizer plans to redomicile in Ireland, where Allergan is based, and the companies expect to complete their merger in the second half of this year.

    Last November, following the announcement of the Allergan-Pfizer deal, Treasury clamped down on inversions by limiting a U.S. acquirer's ability to set up a new foreign parent in a third country and to "stuff" assets into a foreign parent to meet post-inversion ownership limits.

    On Treasury's latest steps, Senator Charles Schumer of New York, who has been a co-sponsor of legislation to curb inversions, said in a statement: "These regulations will make potential inverters and foreign acquirers think twice before making the leap, and those bad actors should be on notice that we intend to clamp down even further."

    LINK - http://www.reuters.com/article/us-usa-tax-inversions-idUSKCN0X1299
     
  3. StockJock-e

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    NEW YORK (TheStreet) -- Allergan (AGN - Get Report) stock is retreating 16.17% to $232.66 in mid-morning trading Tuesday after the pharmaceutical company's $160 billion proposed merger with Pfizer (PFE) was challenged by new rules from the Treasury Department.

    "The deal is dead," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning, adding that he's "been waiting for Allergan to break the deal."

    Under the new regulations, the transaction will no longer be considered as an inversion deal, which would have allowed Pfizer to move its headquarters to Allergan's head offices in Dublin to receive a lower tax rate.
     
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  4. StockJock-e

    StockJock-e Brew Master
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    AGN looking like a buying op here in the $230 range

    Lots of panic pushed it down
     
  5. T0rm3nted

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    Pfizer Said To Terminate $160 Billion Merger With Allergan

    Pfizer Inc. (PFE) decided to terminate its $160 billion merger with Allergan Plc (AGN), a person familiar with the matter said, marking the end of the largest ever health-care acquisition.

    Pfizer will need to pay a $400 million fee to Allergan for expenses relating to the deal, the person said, asking not to be identified as the information is private.

    Allergan, which is run from New Jersey but has a legal domicile in Dublin, last year agreed to merge with Pfizer in a deal that would have given New York-based Pfizer a foreign address and a lower tax rate. Representatives for Pfizer and Allergan declined to comment.

    CNBC reported earlier that the two companies would mutually end their planned merger, without naming its sources.

    The Treasury Department said Monday that new rules would limit companies’ ability to participate in inversion transactions if they’ve already done them within the past 36 months. Allergan has been involved in several such acquisitions in that time frame. In a corporate inversion, a U.S. company merges with a smaller foreign firm and then transfers the new company’s tax address offshore.

    Pfizer had been examining how it might be able to challenge new rules from the U.S. Treasury Department, people with knowledge of the matter said earlier.

    LINK - http://www.msn.com/en-us/money/comp...ar160-billion-merger-with-allergan/ar-BBrpRb8
     
  6. StockJock-e

    StockJock-e Brew Master
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    Bouncy time!

    [​IMG]
     
  7. T0rm3nted

    T0rm3nted Moderator
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    Reported before open today (5/10/16)
    Earnings: EPS $3.04 Revenue $3.79
    Estimates: EPS $2.99 Revenue $3.96

    Up 5.14% today
     
  8. bigbull

    bigbull Active Member

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    This is a company that has multiple revenue streams including the fast growing business of Botox. Back on May 10th, when the company announced the sell of its generic business to Teva for $40B, the company issues a $10B buyback program — $4 - $5 which would be used to buy the company’s over the next four to six months until the term is exhausted. We all know how Wall St. likes companies that ‘return money to shareholders’ via share buyback programs. AGN is a crowd favorite among funds.

    If it breaks $248.50 definitively (to the upside), 2016 highs could be within striking distance.

    A trade below $230.50 warrants a cautionary stance.

    Trade below $221 and $201 gets contested.
     
  9. StockJock-e

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    Allergan reports 2Q loss

    DUBLIN (AP) -- Allergan PLC on Monday reported a loss of $501.7 million in its second quarter.

    The Dublin-based company said it had a loss of $1.44 per share. Earnings, adjusted for one-time gains and costs, were $3.35 per share.

    The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $3.28 per share.

    The Botox maker posted revenue of $3.68 billion in the period, which fell short of Street forecasts. Three analysts surveyed by Zacks expected $4 billion
     
  10. LloydWCoutee

    LloydWCoutee Active Member

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    $AGN of course guidance is going to be down...they just sold $40 B worth of licenses to TEVA
     
  11. bigbull

    bigbull Active Member

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    Numbers were mixed but I am sure the huge -- $10B share buyback program -- will dwarf this quarters missteps. Of course, all this does is set the bar extremely low for the company to post 'better' results towards the end of the year (on a comparable basis), and for some analyst to come out and talk their book to push the stock up or down on nothing more than contingencies. The goal = inflict pain.

    Botox sales topped $190M, driving much of the growth. That is encouraging. The moment that segment of their businesses begins to slow down notably, I would second guess buying AGN at a premium even with the generous share re-purchase program.

    $242.34 and $234.35 offer initial support. A trade below $230.47 warrants a move down to $221.67 and as low as this year lows. Judging the market tape of inactivity, they'll just leave this to float at these prices.

    I still like the name if it can stay above $213 - $230 long term.


    ------------------

    DUBLIN (AP) -- Allergan PLC on Monday reported a loss of $501.7 million in its second quarter.

    The Dublin-based company said it had a loss of $1.44 per share. Earnings, adjusted for one-time gains and costs, were $3.35 per share.

    The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $3.28 per share.

    The Botox maker posted revenue of $3.68 billion in the period, which fell short of Street forecasts. Three analysts surveyed by Zacks expected $4 billion.

    Allergan expects full-year earnings in the range of $13.75 to $14.20 per share, with revenue in the range of $14.65 billion to $14.9 billion.

    Allergan shares have declined 19 percent since the beginning of the year, while the Standard & Poor's 500 index has risen almost 7 percent. The stock has decreased 21 percent in the last 12 months.
     
  12. bigbull

    bigbull Active Member

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    Needs to hold trend line support at $230.47, otherwise it invites an extension of the consolidation phase for another two to four months before there is a resolution to the new trading range.

    Still a worthy long term hold as long as price holds above $213 - $221.
     
    #12 bigbull, Aug 30, 2016
    Last edited: Aug 30, 2016
  13. bigbull

    bigbull Active Member

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    $228 - $230 is still major support to the daily 'higher low, higher high' set-up.
    $210 - $215 is long term support.
    The only way the downtrend is disrupted is if the stock trades back above $242 - $247 and proceeds to take out the current cycle high at $257.
    The R/R is there but price is not acting as though there will be a relief in price short term.
     
  14. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    This one looks like the worst is yet to come. Former support ~$220 turned into resistance when this tried to recover last week.

    The group of generic drug makers is being investigated by the FBI. For AGN, big volume traded today and a red candle. Investors don't want to be here until the investigation clears up.

    Weekly chart:
    [​IMG]
     
  15. T0rm3nted

    T0rm3nted Moderator
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    Recent Insider Trading

    The CFO just added 12% ($300K) to his position

    upload_2016-11-16_1-25-33.png
    upload_2016-11-16_1-25-53.png
     
  16. heyimsnuffles

    heyimsnuffles Active Member

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    Tepper is talking up $AGN at the Robinhood Conference. I wrote a trade idea about AGN and I think that it has bottomed. I also think Biotech IBB has bottomed as a whole.

    Tepper's Long Idea...I wouldn't bet against that guy. One of the Greatest and still old school hedge fund managers that leverages himself and makes money.

    I agree, it's a choppy mess right now on the daily but Closing over $225 confirms the bottom.
     
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  17. StockJock-e

    StockJock-e Brew Master
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    IBB has had this sideways range for a while, do you see any catalyst taking it out of this?

    [​IMG]
     
  18. heyimsnuffles

    heyimsnuffles Active Member

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    I am not sure of the catalyst. Right now the Bollinger Band are expanding and IBB is pulling back into the middle of the range. I see no reason why it will not test the top at 300.

    I believe that the bearishness of Hillary was priced in and that is a MASSIVE igniting bar Pro Gar that will be bought on pullbacks.
     
  19. heyimsnuffles

    heyimsnuffles Active Member

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    If you are going to be LONG any stock this year one of my top picks is AGN

    agn.JPG
     
  20. heyimsnuffles

    heyimsnuffles Active Member

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    Been BULLISH on this since below 200s. Essentially called the bottom around 190 on my blog but I took it off because I am bearish the overall market. If I am going to be long anything it is going to be Biotech and Pharma.

    [​IMG]
     

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