From: Richard Kahn c:I > To: "jeffrey EI Subject: Fwd: Allergen and Teva Date: Thu, 28 Jul 2016 17:47:26 +0000 Wadi merits: agn.pdf; teva.pdf; Cvt_Primer_2013_NEWEST.FDF !ohne-Images: image0Ol.png Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York. NY 10022 cc Begin forwarded message: From: -Ens, Amanda' •z > Subject: Allergen and Teva Date: July 28, 2016 at 9:08:09 AM EDT To: Richard Kahn ‹ > Rich, Regarding biotech, our traders mentioned they are starting to see some rotation within healthcare from yieldier core names into blotechs as investors start positioning for a potential catch-up trade. That said, given your existing exposure, like to suggest AGN and TEVA in specialty pharma. We can also discuss some names in sectors such as med tech and healthcare distribution. BAML analyst Sumant Kulkarnl reiterated his strong buys on AGN and TEVA overnight. Here are two ways to play the story via convertible preferreds where you get upside participation along with yield. As investors continue to search and stretch for yield, mandatory convertible preferreds such as these stand out to me as an attractive and differentiated opportunity. As an investor, you will receive shares at maturity and in the meantime, earn an attractive yield at a considerable pickup over the common stock dividend. This yield, along with the conversion ratio sliding scale, can result in an attractively skewed upside vs downside profile. AGN - BAML reaffirming BUY on US1 listed AGN after FTC approval of generics sale to Teva. We like AGN due to its healthy product mix, solid pipeline and flexibility to deploy capital to drive shareholder return. Next catalyst will be 2Q eamings/2H16 Outlook on 8/8, $294 price target. Quick glance at AGN A 5.5% pfds: 911.5-913.50 vs 260.24 The pfds yield 6% vs zero in common representing great yield advantage. $294 price target Is 13% above current stock. On a 4/- 2O% move in common, the pfds participate 77% on upside