Allergan is a drug company with a strong drug pipeline and is cash-rich. So rich that it could really use a major acquisition to help juice growth. But the merger with Pfizer fell apart, and AGN has backed away from a major merger with the likes of Gilead and Biogen. Instead, the company is spending money on itself. Which isn’t a bad investment, considering its share price is at the cheapest level we’ve seen in close to three years. As well, the political upheaval for biotechs has been overblown. The industry has tailwinds, thanks to the Donald Trump win. And it helps that AGN is a bit different, where its aesthetics business model is rather insulated from political risk.
