Rebates, bundling to keep Allergan's Botox growing in face of competition, specialists say

Allergan

Allergan's Botox may have lost a little market share in the facial injectables arena over the past 12 months--but don’t expect it to back down, experts say.

The multiuse blockbuster has ceded a piece of its market-share pie to Galderma’s Dysport, Leerink Partners analyst Jason Gerberry wrote recently in a note to clients. But specialists he spoke with think the med is on an upward swing regardless.

For one, the category is growing overall. Ad campaigns for Botox, an increasing comfort level among consumers with the use of injections, and an influx of men into the treatment pool have contributed to the expansion, Gerberry said.

But other factors are buoying Botox, too, according to the specialists--and the strength of Allergan’s overall aesthetics portfolio is one of them. One plastic surgeon noted that Allergan’s prowess in breast implants and dermal fillers is “a reason why he’ll frequently purchase Botox as part of a bundle,” Gerberry wrote.

And while Galderma’s product sports a lower list price than Botox does, high-volume prescribers are eligible for “large rebates that mitigate the cost differential on a portfolio basis,” the surgeon said.

It’s good news for Allergan, which will need the blockbuster to keep performing in the wake of its cancelled Pfizer megamerger.

But the company isn’t just counting on the aesthetics market for Botox growth. Recently, it’s thrown its resources into a new DTC campaign for Botox as a treatment for chronic migraines; its latest TV spot, which revolves around beds, urges patients not to take the condition lying down.

Special Report: Pharma's top 10 M&A deals of 2014 - Actavis/Allergan

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