A hint of good news?

[Guest guest]

" As for Allergan's breast-implant products, there is a

risk that they won't receive approval "

http://www.forbes.com/markets/2006/06/05/allergan-0605markets03.html?partner=rss

Upside From New Products At Allergan

Crane, 06.05.06, 9:02 AM ET

Allergan

Banc of America analyst W. Maris upgraded his

rating for Allergan shares to " buy " from " neutral, "

citing potential upside from new products and strong

underlying fundamentals.

Maris said the recent approval and pending European

launch of Ganfort, used to treat glaucoma, and the

pending approval of new silicone breast implants and

the anti-wrinkle injection treatment Juvederm could

prove to be growth catalysts for Allergan (nyse: AGN -

news - people ) stock.

Shares of the specialty pharmaceutical company, which

produces the best-seller Botox, fell 18% from their

high price of $117 after Allergan announced an in-line

first quarter but a full-year guidance that depended

heavily on third- and fourth-quarter results.

Now, Maris said, near-term catalysts could help

Allergan's earnings per share grow 15% to 20% per year

over the next several years.

He raised his 2007 estimates for all three of

Allergan's business segments, resulting in earnings of

$4.32 per share from $4.16.

As for Allergan's breast-implant products, there is a

risk that they won't receive approval or that

Allergan's competitor, Mentor, could receive first or

even sole approval, Maris warned.

But if Allergan's products are approved, the company

could capture profits from the higher demand for

silicone implants in 2007, which, according to trends

in Europe, are likely to be priced at approximately

two times the cost of saline implants.

Maris increased his price target to $110 from $104,

reflecting the stock's 14% potential upside from

current levels.

His top picks in the specialty pharmaceuticals

industry, which didn't include Allergan, were

" buy " -rated Alcon (nyse: ACL - news - people ) and

Penwest Pharmaceuticals (nasdaq: PPCO - news - people

), with price targets of $150 and $26, respectively.