Pursuant to Marketwatch.com, the manufacturer of BOTOX, Allergan, Inc. reported 36% increase in revenue for the second quarter of this year. Botox appears to be its biggest product, somewhat like an i-Pod for Apple. Cosmetic surgery candidates who shy away from a procedure performed under general anaesthesia, such as liposuction or facelift (“Rhytidectomy” which literally means “wrinkle-smoothening” in Latin), opt for a more affordable chemical peel or Botox or Thermage. This is not to say that the result is the same – far from that. However, the fact that the sales of the antiwrinkle treatment rose 7% in the second quarter indicate that even under poor economic conditions, many people think of their wealth in terms of Beauty.
In the latest quarter, Botox sales, which account for about a third of Allergan’s revenue, grew 7% to $360.5 million. Allergan’s results, following a strong first quarter, suggested that the cosmetic-procedures market—at the more affordable end, at least—has turned a corner.
The Irvine, CA, company reported a second-quarter profit of $240.1 million, or 78 cents a share, up from $176.1 million, or 58 cents, a year earlier.
In comparison, according to the American Society for Aesthetic Plastic Surgery, the number of surgical cosmetic procedures fell to 10 million last year, after reaching 11.7 million in 2007. The reports indicates that potential patients are having second thoughts, holding off on treatments, while regular patients are spacing out their sessions.
Therefore surgical centers very often focus on offering more affordable procedures, i.e. Botox and its rival Dysport. Patients appear to be thrilled by large mail-in rebates and discounts (such as a $75 mail-in rebate from Dysport’s marketer, Medicis Pharmaceutical Corp.).
While the sales of Latisse dropped to between $90 million and $100 million today from February’s $140 million target, Dysport and Botox are still on the rise.