Why Allergan Shareholders Love Bad News

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Why Allergan Shareholders Love Bad News
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Clinical trial failure gives investors hope of a change in strategy

Botox maker Allergan offers a prime example: the company announced Wednesday that its depression drug candidate rapastinel had failed in late stage

clinical trials. Of course, pipeline failures usually are bad news for investors. Yet Allergan shares shot up nearly 4% Thursday and rose again on Friday.

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