Seven Corners Initiates Coverage on Allergan (AGN) With A Sell, Due to Non-GAAP Accounting Concerns

Today Seven Corners Capital Management initiated coverage on Allergan (AGN). Specifically, we are short AGN for, among other things, the following reasons: (1) Last year the SEC issued guidance on impermissible non-GAAP financial metrics; (2) Allergan's "non-GAAP EPS" measure appears to violate these rules; and (3) Allergan will likely need to cease using (or substantial alter) its "non-GAAP EPS" metric. Due to the belief that AGN's true "economic earnings" are well below its "non-GAAP EPS" numbers and guidance, we view AGN as substantially overvalued currently.

To find a PDF containing our full AGN writeup, please visit our Research section (link here).