NEW YORK (TheStreet) -- Shares of Allergan (AGN) are up 0.16% to $166.33 in pre-market trade as the health care company looks to make changes aimed at increasing profit in the coming months as well as forecasts for future years to convince shareholders that the company is better as a standalone investment, Bloomberg reports.
The Botox maker, being pursued by Valeant Pharmaceuticals International (VRX) and Bill Ackman's hedge fund, will shelve unpromising pipeline drugs and overhaul management incentives, sources said.
A broad restructuring plan set to be outlined during Allergan's earnings announcement later this month will also involve company-wide cost cuts, including some legacy expenses, sources said. Management compensation will be more closely tied to achieving higher forecasts, Bloomberg noted.
TheStreet Ratings team rates ALLERGAN INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLERGAN INC (AGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."