Good news flowed in at
) recently when the National Institute for Health and Clinical
Excellence (NICE) recommended Botox (botulinum toxin type A) in its
final guidance. NICE has recommended the use of the product for the
prevention of headache in adults with chronic migraine, who have
not responded to at least three prior preventative treatments and
whose condition is appropriately managed for medication overuse in
England and Wales.
Primary Care Trusts (PCTs) will now have to allocate funds within
three months for migraine patients being treated with Botox. We
expect that NICE's decision will facilitate better access to the
drug by patients. A final draft guidance was issued by NICE in May
2012, giving an indication about NICE's final decision.
Botox is also approved in the US for the treatment of chronic
migraine headache in adults. Last year in August, Botox received US
food and Drug Administration (FDA) approval for the treatment of
neurogenic overactive bladder (OAB).
The other uses of the drug comprise treatment of increased
stiffness of muscle in elbow, wrist and finger muscles in adults
with upper limb spasticity; treatment of abnormal head position and
neck pain that happens with cervical dystonia in patients aged 16
years and above; and treatment of certain types of eye muscle
problems (strabismus) or abnormal spasm of the eyelids
(blepharospasm) in patients aged 12 years and above.
Botox is also used to treat the symptoms of severe underarm
sweating in adults. Of course, Botox Cosmetic is also used to
temporarily improve the appearance of moderate-to-severe facial
wrinkles in adults.
We note that Botox, which faces competition in the US from
Medicis Pharmaceutical Corp.'s
) Dysport, posted sales of $398.9 million in the first quarter of
2012 (up 9.4% from the year-ago period).
Botox is the key product of Allergan, representing almost 30% of
net product sales. Cosmetic and therapeutic indications contribute
equally to total Botox sales.
Allergan expects Botox sales in the range of $1.7 billion - $1.8
billion in 2012. We believe that the Botox sales guidance is
achievable considering that Botox enjoys78% share of the $2.1
billion global neuromodulators market, which is growing at a rate
We currently have a Neutral recommendation on Allergan. The stock
carries a Zacks #3 Rank (Hold rating) in the short run.
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