Endo International plc ENDP announced that it obtained FDA approval of collagenase clostridium histolyticum-aaes for the treatment of moderate to severe cellulite in the buttocks of adult women under the brand name, Qwo.
Per the company, Qwo is the first FDA-approved injectable treatment for cellulite.
Qwo is expected to be available throughout the United States at aesthetic healthcare practitioners’ offices starting spring 2021.
Cellulite is a localized alteration in the contour of the skin that has been reported in more than 90% of post-pubertal females and affects women of all races and ethnicities. Per the company, when injected into the treatment area, QWO releases the fibrous septae enzymatically by specifically targeting types 1 and 3 collagens. This, in turn, is expected to result in smoothing of the skin and an improved appearance of cellulite.
The approval will provide Endo with an additional source of revenue, given the wide market potential. Shares are up in pre-market trading on the news.
However, shares of Endo have lost 21.1% in the year so far compared with the industry’s 4.5% decline.
Endo’s efforts to revive its business are encouraging after its generics business plummeted due to product discontinuances and pricing pressure from increased competition. We note the company’s major competitors in this space include Mylan MYL, Teva TEVA and Novartis’ NVS Sandoz.
Nevertheless, Xiaflex’s performance has been solid on higher demand in both Peyronie's disease and Dupuytren's contracture. The Sterile Injectables segment continues to gain traction as well, driven by continued strong growth in Vasostrict and Adrenalin.
Concurrent with the first-quarter results, Endo withdrew its revenue guidance due to uncertainties regarding the continued impact of the COVID-19 pandemic. Hence, second-quarter results are expected to be weak.
Endo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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