Allergan Inc. (AGN - Get Report) shares fell almost 4% and Evolus Inc. (EOLS) shares gained almost 12% Monday after the U.S. Food and Drug Administration approved Evolus's new wrinkle treatment for adult patients which is expected to rival Allergan's Botox.
The treatment, called Jeuveau, received FDA approval late Friday, some eight months after the agency first rejected the application citing deficiencies in its manufacturing and chemical composition. The company has said it plans to price the treatment at discount of between 20% and 25% to Allergan's Botox, which generated $3.5 billion in sales last year for the Dublin, Ireland-based pharmaceutical group.
"Evolus is the first company in nearly a decade to enter the fast-growing U.S. aesthetic neurotoxin market," said CEO David Moatazedi, a former Allergan executive. "What makes Evolus unique is our focus on delivering performance beauty products with a customer-centric approach. We are pleased to introduce Jeuveau, the first FDA approved neurotoxin dedicated to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure™ technology."
Allergan is asking the International Trade Commission to investigate Evolus for allegedly stealing trade secrets to make its new version of the medicine, according to StatNews.
Evolus shares gained 11.8% to close at $20.50, while Allergan shares lost 3.9% to close at $138.53 in Monday's trading.