Allergan could sell women's health for $6B, if it would only agree to split: analyst

RBC Capital Markets analyst Randall Stanicky sees lots of reasons Allergan should pursue a breakup. A women’s health sale that could bring in billions is just one of them.

The way he sees it, Allergan’s women’s health unit is a "~$1 billion revenue franchise." But if the Dublin drugmaker were to sell it off? The company would have plenty of takers, Stanicky figures, and potentially $6 billion in deal proceeds when all was said and done.

For one, Impax—helmed by former Allergan chairman and Actavis CEO Paul Bisaro—has "stated interest," Stanicky says, and as the former owner of the women’s health assets, Bisaro knows exactly what he’s dealing with. Lupin, which is looking to play in the women’s health space, could be another possibility, and so could CooperSurgical, which recently snapped up Teva’s Paragard intrauterine copper contraceptive for $1.1 billion.

Then there’s Mylan, which has a "sizeable" women’s health lineup that it last added to in 2015 with a buy of Famy Care. And don’t count out private equity players, either; they’ve been "active recently in the area," Stanicky notes.