Revance Therapeutics ( RVNC ) launched to a nearly two-year high Tuesday on Phase 3 data for a frown line-treatment that would rival Allergan 's ( AGN ) Botox but likely won't come on the market until 2020, if approved.
[ibd-display-video id=3004685 width=50 float=left autostart=true] By the closing bell on the stock market today , Revance soared by 33.7% to 34.75, and broke out of a flat base with a buy point at 28.85. Intraday, shares touched a high last seen in January 2016. Allergan sank 1.6% to finish at 164.28.
The treatment, called RT002 , is used to treat wrinkle lines between the eyebrows. RT002 would rival Allergan's Botox , which brought in $729.2 million in 2016 for what is known as a "facial aesthetic product." Allergan also sells Botox as a therapeutic for hyperhidrosis and other conditions like migraines. In total, the drug made $1.98 billion in 2016.
Revance's drug has a longer duration than Botox by a month, Evercore analyst Umer Raffat wrote in a note to clients. The effects of Botox as a cosmetic last around three to four months. But it's not certain RT002 will get a label for up to six months.
"I think there's a case to be made for that, but that's not a layup," Raffat said. "It's possible that Revance gets a language like five to six months (for duration of effect)."
In a pair of Phase 3 trials, the percentage of patients who had none or mild wrinkles and achieved at least a two-point improvement from baseline vs. a placebo was 73.6% and 74%.
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Also, at that point in time, 88% of patients in the first trial and 91% of patients in the second trial said they were either satisfied or very satisfied with their treatment experience, Revance said in a news release.
Median duration for patients treated with RT002 to return to baseline wrinkle severity was nearly 27 weeks.
A long-term safety trial is fully enrolled and expected to be complete by the second half of 2018. If successful, Revance said it plans to submit an application to the Food and Drug Administration in the first half of 2019 and launch in the U.S. in 2020.
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