With its very strong (and lucrative) positions in markets like
aesthetics (including the well-known Botox), eye care, device-based
plastic surgery, Allergan (NYSE:AGN)
arguably merits the premium valuation it typically gets from the
Street. Recent developments pertaining to generic competition to
Restasis has shaken investor confidence, though, and sent the shares
down more than 20% to today's level. Although I do believe that bears
may be overestimating the threats to key franchises like Botox and
Restasis, it is hard to make a confident call that Allergan is
dramatically undervalued now, other than to say that the Street has
often been willing to overpay for these shares and may again in the
future.
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http://www.investopedia.com/stock-analysis/073113/after-sharp-pullback-allergan-pretty-enough-agn-vrx-jnj-nvs.aspx
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