Allergan breast implant recall lifts shares of rival Sientra

Project Sage Oldco

24/07/2019 18:21

** Medical aesthetics co's shares  SIEN.O  up 3.7% at $5.41 
  
    ** A worldwide recall of breast implants from rival Allergan
Plc  AGN.N  opens up a ~$35 mln void in the U.S. market for SIEN
and Johnson & Johnson's  JNJ.N  Mentor breast implants to fill,
Craig-Hallum analyst Alexander Novak says
    ** FDA on Wed said it asked AGN to recall its Biocell
textured breast implants and tissue expanders across markets,
citing concerns over a rare form of cancer  urn:newsml:reuters.com:*:nL4N24P38S
    ** FDA says the risk of the cancer with AGN's Biocell
textured implants is about six times compared with textured
implants from other manufacturers marketing in the United States
    ** "The Biocell recall should help continue, if not
accelerate, U.S. share gains (for Sientra)," Novak says, adding
that when SIEN launches outside the country, the AGN recall will
create a market "ripe for new entrants"
    ** SIEN intends to launch outside the United States in early
2020
    ** AGN has already stopped selling Biocell textured implants
in Europe and Canada and Novak says the opportunity outside the
U.S. sans Biocell is ~120 mln
    ** In March, FDA issued warning letters to SIEN and JNJ for
failing to comply with post-approval study requirements for
breast implants  urn:newsml:reuters.com:*:nL3N2163TQ
    ** Up to Tuesday's close, SIEN stock had fallen ~59% YTD 

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208; Reuters Messaging:
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