Reloxin submission to the FDA

Implications:  The submission of Reloxin to the FDA is a positive sign for both Ipsen and Medicis. The market will only grow with the impending approval, and the launch of a competitor to Botox may result in some softening of pricing both to physicians and the end consumer. The two studies that have been done comparing both agents have showed mixed results- one with Botox having an advantage, and the other showing equivalence. A large scale study is needed, when both products are available in the US. Both Medicis and Allergan will probably bundle purchasing of their fillers with the toxins. Ultimately which product is used more is very dependent on efficacy, pricing, and the relationship that the companies representatives have with the end user physicians.

Analysis:   Both Ipsen and Medicis will benefit from this submission, especially when approval is granted. It is unlikely that this will not happen. Allergan will have to modify both its pricing and marketing to counter the upcoming competition from the new toxin. A head to head study is needed to compare both agents.