Why Allergan Stock Fell 7% Today

Stock performance

Today, Allergan (AGN) is trading at $135.98, which is a ~7.47% decline from its close of $146.76 on December 18. Also, today, the company hit its 52-week low of $135.61. Allergan’s stock price declined from $157.39 at the close of markets on November 16 and reached $146.76 on December 18, 2018, which is a ~13% decline over the last month.

Allergan’s stock closed at $163.58 on December 29, 2017, and reached $146.76 on December 18, reflecting a ~17% YTD decline.

Why Allergan Stock Fell 7% Today

Reason for the decline in the stock price

Today, Allergan (AGN) announced that it suspended sales of textured breast implants and tissue expanders in the European market. The company has also announced that it will recall all these products available in the European market.

The decision to suspend sales and withdraw the products comes after Agence Nationale de Sécurité du Médicament (or ANSM) requested a compulsory recall of the product. Allergan’s CE mark for the textured breast implants and tissue expanders has expired. The company has also noted that it will continue to pursue renewal of CE mark with G-MED.

Allergan noted that the company would cooperate with ANSM and participate in the upcoming scientific forum in February that ANSM has scheduled. The textured breast implants and tissue expanders didn’t show any risk to a woman’s health, and the product is being recalled due to ANSM’s request.

Analyst recommendations

Of the 23 analysts tracking Allergan (AGN) in December 2018, six of them recommended a “strong buy,” while 11 analysts recommended a “buy” rating. Six analysts recommended a “hold” for Allergan in December.

On December 19, Allergan had a consensus 12-month target price of $212.17, which represents a ~56.06% return on investment over the next 12 months.