by: Elizabeth Balboa, Benzinga Staff Writer
Allergan will redirect its focus to medical aesthetics and dermatology, ophthalmology, central nervous system and gastroenterology.
Shares initially fell 3 percent on the news but largely recovered by the time of publication Wednesday.
Why It’s Important
Cowen recently valued Allergan’s women’s health segment at around $4 billion and infectious diseases at $2 billion. Their sale would leave behind a growing set of assets Barclays considers central to the bull thesis.
CNBC’s David Faber suggested prospective buyers may opt to wait on the women’s health business until an August target date for a candidate that's under regulatory review.
Faber additionally predicted the sale proceeds would support buybacks and debt reduction.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.