Mylan and Revance Therapeutics announced plans to develop and commercialize a biosimilar to Allergan's Botox, TheStreet reports.
Here's what you should know.
1. Market analysts believe the deal puts pressure on Allergan to announce a significant deal to counteract the biosimilar announcement.
2. Mizuho Securities analyst Irina Koffler said, "We think Allergan [management] must now prepare for the prospect of a viable global biosimilar and make preemptive plans to diversify its business into other verticals rather than focus primarily on its international cosmetic build-out."
3. Allergan is in the midst of acquiring Elastagen Pty, an injectable aesthetics product development company, but Allergan's President and CEO Brent Saunders said 2018 "will be a relatively boring year for Allergan on the [acquisition] front."
4. The Mylan announcement sent Allergan's stock into a slump. The company's stock lost 3.8 percent in value March 1. In 2018, Allergan's stock has declined 9.3 percent to date.