Allergan plc (AGN - Free Report) announced yesterday that the FDA has approved its Juvederm Vollure XC dermal filler for correction of facial wrinkles and folds in adults over the age of 21.
The approval was based on the data from a U.S. pivotal clinical trial. It showed that 59% of patients under test are improving in moderate to severe nasolabial folds for up to 18 months, while 82% of patients were very satisfied with the results after six months and 68% at 18 months.
In fact, the drug is the new addition to its Juvederm dermal filler family of products, which also includes Juvederm Voluma XC to increase volume in cheek area and Juvederm Volbella XC, for lip augmentation.
Juvederm Vollure XC, an injectable gel for the correction of moderate to severe facial wrinkles and folds, such as nasolabial folds. Also, it is formulated using company’s proprietary VYCROSS technology. This gel is the only product that uses Hyaluronic Acid as filler to correct nasolabial folds, whose effect lasts up to 18 months. Already marketed in Europe as Juvederm Volift, this product is expected to be available in the U.S. from April this year.
Furthermore, Allergan’s shares increased 12.8%, compared favorably with the Zacks classified Medical - Generic Drugs industry gain of 3.6%.
Dermal filler is fast and easy treatment for various cosmetic problems with minimum discomfort and downtime. Moreover, due to the rise in imbalanced diet, insomnia and stress the market seems to be increasing with patients experiencing cosmetic skin problems such as scars, deep lines and wrinkles. Additionally, as job opportunities for women has increased in developing economies such as India and China, disposable income is on the rise, which is in fact driving the demand for cosmetic skin procedures.
In the last reported quarter, dermal filler revenue increased 25% year over year. We believe this new dermal filler can help to improve its top line further.
Allergan sold its global generic pharmaceuticals business to Teva Pharmaceutical Industries Limited (TEVA - Free Report) in Aug 2016 for $33.3 billion cash and 100.3 million unregistered Teva ordinary shares.
Zacks Rank & Key Picks
Allergan currently carries a Zacks Rank #3 (Hold). A couple of favorably placed stocks in the health care sector are GlaxoSmithKline plc (GSK - Free Report) and Grifols, S.A. (GRFS - Free Report) . Both the stocks hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
GlaxoSmithKline’s has recorded an average positive surprise of 11.03%, over the trailing four quarters. Its share price has jumped more than 9.9% year to date. Also, the earnings estimates for 2017 have risen 4.5% over the past 60 days.
Shares of Grifols rose 16.8% in the past one year, while earnings estimates for 2017 increased more than 9% to $1.14 over the past 60 days.
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