Allergan Upgraded at Morgan Stanley, Stock Surges

Concerns over a rival challenging Allergan (AGN) might be overblown.

Analysts at Morgan Stanley on Wednesday upgraded the pharmaceutical company's stock to "Overweight" from "Equal Weight," arguing that concerns over Revance Therapeutics' (RVNC) launch of a rival Botox treatment, Allergan's key product, are exaggerated. 

Shares of Allergan were higher over 2.7% during afternoon trading on Wednesday.

"Fears about a 'better Botox' may be overdone," Morgan Stanley analyst David Risinger noted. He argued that it will be "difficult" for Revance's product, RT002, to be "materially longer-lasting than Botox, which has been a concern for AGN investors."


"We also think that mechanistically it would be difficult to create a significantly longer-lasting Botox because botulinum toxin gradually loses efficacy over four months due to neuronal regeneration," Risinger added.

While he doesn't see a significant near-term catalyst to boots the stock, he believes the negatives surrounding the rival Botox treatment are reflected in the stock and has reaffirmed his $200 price target.

More of What's Trending on TheStreet: