Shares of Irvine drug maker Allergan Inc. could gain as it finds new uses for its flagship Botox drug, an analyst said Tuesday.
The Food and Drug Administration could approve Botox for treating migraine headaches in 2009, Peter Bye of Jefferies & Co. wrote in a report to clients. The FDA could approve the drug for two forms of overactive bladder in 2010 and 2011, he said.
In the next year, Bye said Allergan’s shares could rise nearly 19% from where they are now. Allergan has a market value of about $19 billion.
Its shares were down slightly in midday trading in New York on Tuesday.
Study results for Botox and overactive bladder have been “highly favorable,” Bye said. The drug relieved symptoms for up to nine months with a low incidence of side effects, he said.
Existing treatments aren’t particularly effective and patients don’t use them because of side effects, according to Bye.
Botox is best known as a facial injection to smooth wrinkles.
Medical uses of Botox, Bye said, led to greater revenue because repeated doses are used.
An economic slowdown and increased competition aren’t likely to have much effect on the drug’s sales, Bye said.
Scottsdale-based Medicis Pharmaceutical Corp. is developing Reloxin, a potential rival.
