Aging baby boomers seem to want nothing more than to not look their age. Botox-maker Allergan (AGN) is now banking on a wrinkle smoother called Juvederm, which the FDA said may last for up to a year. The story seems great, but the stock can’t seem to catch the fever. Can Allergan keep riding the 78 million-strong baby boom wave?
Allergan CEO David Pyott says the worldwide medical aesthetics market is growing at about 20%, and Allergan is “by far the biggest player.” The FDA gave the company a labeling change on Juvederm so it is now the only “dermal-filler” that is approved to last up to an entire year.
And the pricing power is there, too, he says. One Botox treatment costs around $400 and lasts three to four months. One Juvederm treatment costs around $500 but could last three or four times as long. The two products are not interchangeable, though. Botox generally treats wrinkles in the upper facial area, mostly around the eyes and forehead, while Juvederm is approved to treat wrinkles around the nose and mouth area.
Looking ahead, Pyott says Allergan is well-diversified and isn’t only riding on Juvederm to take the stock higher. There’s plenty of “new opportunities ahead,” he says.
Eric Bolling would hold this stock – but the rest of the traders recommend buying it on the margin.
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Trader disclosure: On July 10th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Macke Owns (ATVI), (JWN); Najarian Owns (DNDN),Finerman's Firm And Finerman Own (HD), (NMX), (WMT), S&P Puts Bolling Owns (ICE), (NMX), (T), Gold, Silver, Natural Gas, Copper, Corn