UBS analyst Navin Jacob downgraded Allergan (AGN) to Neutral from Buy with a price target of $203, up from $189. Based on takeover terms and a $96 price target for AbbVie (ABBV), much of the upside is largely baked in to Allergan shares, Jacob tells investors in a research note. The analyst expects the deal to close in Q1 of 2020 and believes that the companies have sufficiently addressed possible anti-trust issues with the announced divestitures of Zenpep and Brazikumab.

AbbVie announced positive top-line results from SELECT-GCA, a Phase 3, multicenter, randomized, double-blind, placebo-controlled study, showing upadacitinib in combination with a 26-week steroid taper regimen achieved its primary endpoint of sustained remissiona from week 12 through week 52 in adults with giant cell arteritis. In this study, 46% of patients receiving upadacitinib 15 mg in combination with a 26-week steroid taper regimen achieved sustained remission compared to 29 percent of patients receiving placebo in combination with a 52-week steroid taper regimen. Key secondary endpoints were also met, including a higher percentage of patients receiving upadacitinib 15 mg in combination with a 26-week steroid taper regimen achieved sustained complete remissionb from week 12 through week 52 compared to patients receiving placebo in combination with a 52-week steroid taper regimen. A lower percentage of patients experienced at least one disease flare through week 52 in the upadacitinib 15 mg group versus the placebo group. The study results also showed that upadacitinib 7.5 mg did not meet the primary or any of the secondary endpoints.