With $36bn from Teva, what should Allergan buy next?
This article was originally published in Scrip
Allergan left all options on the table in terms of the types of deals that the ever-growing company will pursue with its $36bn in after-tax proceeds from the $40.5bn sale of its generics business to Teva Pharmaceutical Industries.
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Allergan was expected to announce soon that it would follow its shareholders' advice and split the company in two, but it's being acquired by AbbVie for $63bn instead, finally giving investors a big boost in their Allergan holdings after years of decline.
Financials are holding up well despite generics launching against multiple Allergan products, but with stock price falling the company is conducting a strategic review to make sure it isn't missing out on any alternative business strategies that could boost the enterprise's value.
Allergan is working on a plan to reduce costs now that Restasis generics could hit the US market in 2018, but the company said sales growth for other drugs coupled with new product launches will boost revenue even if the dry eye drug loses its blockbuster status.