ST Humphrey Says Still 'Buy' Allergan

The company received FDA approval for broader usages of Botox, its anti-wrinkle treatment

ST Humphrey keeps its buy rating on Allergan (AGN ).

Analyst Ken Lauden says Botox's label now has broadened beyond crossed eyes and muscle spasms to include brow furrow and frown lines. He says investors have been waiting for this for some time. He notes Botox is about one-third of the company's sales, which he says should work higher. Lauden expects cosmetic approval, and the subsequent direct-to-consumer campaign, to serve as a springboard for 20% plus revenue growth in late 2002 and 2003. He sees in-line third quarter results. Lauden also says upcoming catalysts include the launch and progress of Botox cosmetic direct-to-consumer campaign and third quarter results.

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