Allergan: Latisse Eyelash Enhancer Looks Promising
A global health-care company, Allergan is a leading producer of ophthalmic, neuromuscular, and skin-care products. Its eye-care products accounted for some 46% of 2008 sales; Botox, about 30%; breast implants, 7.1%; devices for obesity treatment, 6.8%; and skin care, 2.6%. Foreign markets accounted for about 35% of total sales.
Two things could soon make Allergan’s stock move higher: a new application of Botox to treat chronic daily headaches and a new product called Lumigan, a treatment for glaucoma. But it’s one of the side effects of Lumigan that could deliver a bounty for Allergan: use of the compound results in longer and thicker eyelashes. As a result, Allergan developed a product called Latisse, which the Food & Drug Administration approved for eyelash enhancement last December. Latisse is applied on the upper eyelid while Lumigan, an eyedrop, is used in the eyes.
Latisse was launched in January, 2009, priced directly to physicians at $70 per application and $88 to wholesalers, notes analyst John Boris of Citigroup C. Citigroup has done banking for Allergan. He estimates sales of $40 million in 2009 from Latisse. Although he rates Allergan a hold because of concern about the weak economy, Boris says the company has above-average earnings growth, an attractive product pipeline, and a proven management team.
Gregg Gilbert of Merrill Lynch BAC says in a report that based on Allergan’s market research, roughly 9 million women in the U.S. could consult their physicians about a product like Latisse. Merrill has done banking for Allergan. “If we assume a cost of $75 a unit per month, the market could approximate $8 billion in the U.S. alone,” says Gilbert, who rates the stock a buy with a 12-month price target of 48 a share. A penetration of 5% of the market would equate to $400 million, which he says could generate 75ยข a share in yearly earnings for Allergan. He forecasts Allergan will earn $2.68 a share in 2009, $3 in 2010, and $3.46 in 2011, up from 2008′s $2.57.
Read full press release via Marcial: Allergan: A Lift from More Than Botox? – BusinessWeek.
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on Feb 28 2009. Filed under Injectables.
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I really hope ladies take some caution if they decide to use this product… in my opinion, the pros out weigh the cons. Side effects are dark circles, change in the color of your iris, red/itchy eyes… hmm, I would think that out weighs having more eyelashes. Not to mention, why go through the hassle of a prescription DRUG. I have been using a cosmetic called Revitalash for a while now and it does what latisse claims to do and i don’t need to worry!
I have had good success with Latisse so far. It is the same drug that has been used for years to treat glaucoma. That’s where they came up with the idea. The advantage of Latisse over extension is that it is your real lashes. Since this product is new it will be interesting to see how often application is needed once the full effect has occurred.
Revitalash has lost its potency since the lawsuit from Allergan.
Clear View Eye Care
Thanks for the insight on this product Dr. Wallace. It’s always good to hear from the professionals using these products.