Allergan shares rise on eyelash drug outlook (AP) (04-12-2008)

NEW YORK (AP) -- Shares of Allergan Inc. gained ground Thursday as Wall Street forecast a positive regulatory review for the use of glaucoma drug Lumigan as a treatment for longer and fuller eyelashes.

The maker of eye care products, breast implants, and anti-wrinkle treatment Botox hopes to eventually market Lumigan as a way to enhance eyelashes. The Food and Drug Administration said in documents posted online Wednesday that the drug appears to work for the proposed indication, and a panel of experts will make a recommendation Friday on whether to approve the new indication.

Shares of the Irvine, Calif.-based company rose $1.19, or 3.3 percent, to $37.39 in midday trading. The stock has traded between $28.95 and $70.40 over the last 52 weeks.

The company plans to market the drug as Latisse for the new indication, if approved.

Across the board, analysts said they expect the drug to gain FDA approval, putting the company into a new lucrative market.

He reaffirmed a "Neutral" rating on the company and expects a favorable recommendation on the drug from and FDA panel on Friday.

Allergan, meanwhile, indicated that peak global sales of the drug could reach $500 million annually for the eyelash indication.

Meanwhile, Buckingham Research Group analyst David G. Buck reaffirmed a "Strong Buy" rating on the company and said approval of the indication could lead to a 2009 launch by the company's Botox sales force.

Lazard Capital Markets analyst Dr. Sean Lavin reaffirmed a "Buy" rating and expects FDA approval in the first half of 2009.

Source: AP