AGN – Market expectations are for fading Uniform ROA, but management is confident about R&D and their market positioning

• Allergan plc (AGN:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 8.3x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their R&D productivity and market positioning
• Specifically, management generated an excitement marker when saying that they have invested in buying out distributors for CoolSculpting to allow them to go direct in several key markets. Furthermore, management is confident in their R&D productivity, and that people will walk away from the Medical Aesthetics Day excited about the market and the company’s position in the market. Moreover, management is also confident that Abicipar has a positive risk-reward profile, and in their positioning given the bifurcation of the vision market