) recently announced that Botox (botulinum toxin type A) has been
recommended by the National Institute for Health and Clinical
Excellence (NICE) in the final draft guidance.
NICE is recommending the use of the product for the prophylaxis
treatment 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.
A final guidance by NICE is expected to be published in June.
Primary Care Trusts (PCTs) will have to allocate funds within 3
months after the final guidance is issued.
Botox is already approved by the U.S. Food and Drug
Administration (FDA) for the treatment of chronic migraine headache
in adults. Last year in August, Botox received 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. Additionally, Botox Cosmetic is used to
temporarily improve the appearance of moderate-to-severe facial
wrinkles in adults.
We note that Botox, which faces competition in the U.S. 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 2012 Botox guidance is
achievable considering the 78% share Botox enjoys 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.
ALLERGAN INC (AGN): Free Stock Analysis Report
MEDICIS PHARM-A (MRX): Free Stock Analysis
To read this article on Zacks.com click here.