Shares of Botox maker on the rise
Shares in Allergan, the producer of Botox facial fillers, are on the rise this week. The news comes after a panel of US government advisers favorably reviewed one of the company’s new cosmetic products.
Recently, Allergan had asked the Food and Drug Administration to approve its new product, Lumigan, which enhances eyelashes. Last week the Administration voted that the drug’s benefits outweigh its risks.
According to Forbes, shares of Allergan have risen 2.8 per cent, to $39.63 US, so far this week. The company expects its annual sales to total around $500 million.
Allergan makes the bulk of its profit from eye-care products, Botox anti-wrinkle injections and breast implants. In October, Allergan reported increasing sales for most of these products.
A poll conducted in the US in autumn found that sales of non-surgical cosmetic treatments like Botox had increased or remained the same during the global economic downturn.
In contrast, many clinics are reporting a decrease in patients seeking expensive cosmetic surgery procedures like breast augmentation or liposuction.
Instead, patients are continuing to hunt for cosmetic bargains that will keep them looking young without breaking the bank. Demand for non-invasive treatments is only expected to rise, with experts forecasting a 7.2 per cent rise in popularity by 2012.
Due to its relatively inexpensive cost, Botox has seen much of this recent rise in popularity, especially in the USA. A report released in November found that some American cosmetic surgeons are even hosting Botox parties in their homes, in contrast to many UK professionals who discourage such parties.
Tags: Allergan, Botox, cosmetic bargains, facial fillers, non-surgical procedures