Sep.12, 2011--Allergan Inc. has moved its eyelash treatment into the second clinical stage of testing as a therapy for baldness and expects to see data by the middle of next year, Chief Executive Officer David Pyott said.
The product, Latisse, was approved in 2008 to aid in eyelash growth, and generated $82 million last year for the Irvine, California-based company. Allergan is currently testing Latisse for men and women against placebo.
Latisse may gain up to an additional $200 million to $500 million in annual sales by 2020 if it’s proven to spur hair growth, estimated Ronny Gal, an analyst with Sanford C. Bernstein & Co. in New York. The product is designed to work similarly to other hair-loss therapies such as Johnson & Johnson’s Rogaine, said Gal, who recommends buying Allergan shares.
“It will grow hair from the existing follicle, and help you maintain the hair you’ve got,” Gal said in a telephone interview today. “It’s clear it works in principle, because we know it grows eyebrows and we know it grows lashes.”
Allergan won approval last month for the use of Botox as a therapy for urinary incontinence, and in October as a treatment for chronic migraine headaches. The company estimates the product will produce $1.55 billion to $1.59 billion in revenue this year, and foresees about $100 million in sales from Latisse.
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