Allergan plc may face pressure to do significant deals amid news that another competitor to Botox is in the works, according to a stock analyst.

Mylan NV and Revance Therapeutics Inc. said after the market close on Wednesday, Feb. 28, they have linked up to develop and commercialize a proposed biosimilar or copy of the drug, which has both therapeutic and cosmetic indications.

“We think Allergan [management] must now prepare for the prospect of a viable global biosimilar and make pre-emptive plans to diversify its business into other verticals rather than focus primarily on its international cosmetic build-out,” Mizuho Securities USA LLC analyst Irina Koffler said in a note.

Koffler thinks Allergan “may now be pressured to pursue transformative transactions.”

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