Allergan (NYSE: AGN)
Allergan was already off to a rough day in the market today, and for good reason. The company released its earnings report for the most recent quarter, and the report wasn’t positive. However, minutes ago, we started to notice a spike further down. Below, we’ll talk about what we’re seeing, why, and what we can expect to see from AGN ahead.
AGN Is Having A Rough Day
As mentioned above, Allergan hasn’t had the best day in the market today. After reporting earnings that missed the mark, the company was already seeing declines. However, minutes ago, the declines went from bad to worse with a relatively large spike downward. Currently (1:26), AGN is trading at $198.26 per share after a loss of $10.39 per share or 4.98% thus far today.
Why Are Things Going From Bad To Worse
While AGN was already having a bad day, it spiked further down. So, why are things going from bad to worse? When we noticed the movement, we went digging. The reason for the declines seems to have something to do with the company’s Phase 2 trial of VTP-38543. The trial was part of the acquisition of VTAE that the company paid $640 million from.
Unfortunately, the treatment that was being assessed for Atopic Dermatitis per Evercore ISI has missed its primary endpoint. Of course, the failed trial is not a good thing for Allergan.
What We Can Expect To See Ahead
In the short run, things aren’t looking good. Investors are likely to continue abandoning the stock on the failed study and poor financial results. However, in the long run, I maintain a relatively bullish opinion. At the end of the day, AGN has built an incredible brand, and has had to fight its way over hurdles to do so. This is just another hurdle in the road. In the long run, AGN is likely to see gains!
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[Image Courtesy of Pixabay]