NEW YORK (
shares rose in extended trading on Friday after the company received approval from the
Food and Drug Administration
to market its Botox product to combat chronic migraine headaches.
Botox is best known as a cosmetic treatment for wrinkles but it has other indications, including for the treatment of severe underarm sweating and muscle stiffness.
Allergan said that, in the approved formulation, Botox has been cleared to prevent chronic migraine headaches in adults for up to three months after injections in recommended locations in the head and neck.
Shares of Allergan were last quoted up 6.6% at $73.40 on volume of around 26,000, according to
. Based on Friday's regular session close at $68.86, the stock was up 8.3% so far in 2010.
The shares have been on a roll of late hitting successive 52-week highs in the past few sessions, and blowing through 50- and 200-day moving averages of $65.45 and $62.90 respectively. A break above $70 on Monday would push the stock past levels it hasn't seen since early 2008, and send it to new all-time highs.
Allergan said in August it expects Botox sales to range from $1.36 billion to $1.39 billion in fiscal 2010, and that's up from the outlook it gave back in February for sales of between $1.33 billion and $1.37 billion from the product.
The company, which didn't say when it expects to begin selling Botox for the new indication, explained the Botox treatment for chronic migraines would involve the administration of 31 injections into seven specific head and neck sites per treatment session.
Allergan is slated to report its third-quarter results on Nov. 1. The current average estimate of analysts polled by
is for earnings of 78 cents a share on revenue of $1.2 billion in the September period.
Wall Street had a bullish view of the stock ahead of this news with 17 of the 23 analysts covering the company at either strong buy (9) or buy (8) with the remainder at hold. The median 12-month price target of $74 implies a premium of 7% from Friday's close, although the stock is already knocking up against that in afterhours action.
Written by Michael Baron in New York.
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