As a result of the ruling, we’re raising our fair value on Fresenius and lowering our fair value on Akorn.
Although first-quarter results showed positive signs, debt remains a significant concern.
Clinical trial requirements and the lack of interchangeability mean that Botox remains a wide-moat franchise.
The wide-moat firm hasn't yet faced competition for Restatsis, so we think our fair value estimate stays mostly intact.
The stock price implies the worst-case scenario for this wide-moat company.
Concerns about generic Restasis and longer-term Botox competition are manageable challenges for this wide-moat company.
The drugmaker must still contend with extensive competition in the generic drug industry and high financial leverage.