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Why are Allergan (AGN) and Teva Pharma (TEVA) Stocks Up Today?

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On Wednesday, shares of Allergan Plc (AGN - Free Report) and Teva Pharmaceuticals Industries Ltd (TEVA - Free Report) are both on the rise, up around 2% and 3%, respectively, in morning trading after Teva CEO Erez Vigodman said it expects its $40.5 billion acquisition of Allergan’s generics business to close any day.

However, the companies have extended the deadline for finishing the transaction to October in roder to allow more time for U.S. antitrust approval.

Mr. Vigodman said in a conference call with analysts that "We expect the closing of the ... generics deal at any time now.”

According to Reuters, “Vigodman's comments came after Allergan said in a regulatory filing on Wednesday morning that the companies had amended their sale agreement to extend the deadline by three months into late October.” The company is also now planning to not include two products from the sale: Actonel and Carafate. The filing also disclosed that Teva will reduce the cash it will pay by $221 million.

TEVA stock is also up today after it increased its Q2 forecast. The company now expects adjusted earnings between $1.19-$1.20 per share, up from previous estimates of $1.16-$1.20 per share. Teva also raised its revenue projections for the second quarter, with revenues now expected between $4.8 billion-$5 billion versus previous estimates of $4.8 billion-$4.9 billion.

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