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Allergan, Inc. (NYSE:AGN) To Meet FDA Over Rejected Drug

Boston, MA 07/01/2014 (wallstreetpr) – Allergan, Inc. (NYSE:AGN) plans to meet the Food and Drug Administration to discuss the way forward for its rejected treatment known as Levadex or Semprana. The drug is being offered as a migraine inhaler. However, the regulator refused to approve the treatment citing a problem with the delivery device of the drug.

According to the company officials, they expect to get an answer from FDA later this month after meeting the regulator to discuss Levadex.

On the other hand, FDA approved Orzurdex, which is a treatment for diabetic macular edema. The condition can lead to loss of vision of even blindness in people with diabetes.

Rich pipeline

In addition to Levadex/Semprana and Orzurdex, Allergan, Inc. (NYSE:AGN) also has a rich product pipeline of which it plans Phase 3 study for two of its experimental drugs. One of the experimental drugs is a treatment for macular degeneration related to age, which can cause vision loss. The drug is expected to enter the last of the three clinical trial stages required FDA.

The company has a glaucoma treatment that is expected to enter the final trial stage by the end of this year.

Resist takeover

Owing to its rich product pipeline and the fact that the company has a brighter future in its present structure, Allergan, Inc. (NYSE:AGN) is resisting a takeover bid from Valeant Pharmaceuticals Intl Inc (NYSE:VRX), which has offered to purchase it for $54 billion. Valeant (NYSE:VRX) has already improved its bid twice as it seeks to become among the world’s largest drug companies.

Valeant (NYSE:VRX) joined forces with Bill Ackman, whose Pershing Square Capital owns 9.7 percent in Allergan, to push forward a deal for the company.

According to analysts at Sterne Agee & Leach Inc, the approval of Levadex would be an important milestone for Allergan, Inc. (NYSE:AGN) in validating its rejection for Valeant takeover bid. In rejecting buyout offers, the company is making a point to investors that it is better off alone.

Published by Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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