This week’s “Stocks to Watch” deals with a company that you may not be familiar with, but it makes a product you’re probably very familiar with.
The stock to watch this week is Allergan, the makers of the anti-aging drug Botox.
Allergan posted good enough first quarter numbers that it announced plans to buy back 10 billion dollars (!!!) worth of stock.
Allergan’s stock price beat its first quarter price from last year (last year it ended down) and their earnings-per-share beat market expectations, eventually settling down at $3.04 a share.
The biggest reason for the price surge was the company’s landmark product: Botox.
Sales of the drug skyrocketed from $84 million all the way up to $637.5 million, bringing the company’s 2016 revenue expectation to $17 billion.
Since making the announcement, Allergan’s shares have risen a little over two percent. If the company’s planned sale of its generics unit is approved (which is expected), look for the stock price to rise even more in the upcoming months.