Biotech Values

[DewDiligence]

JNJ throws in the towel on PurTox botulinum toxin, which would have competed with AGN’s Botox and VRX’s Dysport:

http://online.wsj.com/news/articles/SB10001424052702303603904579495740309434428

Johnson & Johnson said it has decided to end development of an anti-wrinkle treatment aimed at challenging Botox. [Calling PurTox an “anti-wrinkle” treatment is shortchanging the potential in that it would’ve been used in non-cosmetic medical applications just as Botox is.]

…The potential Botox rival came with the purchase of breast-implant maker Mentor for $1.1 billion in 2009, and was to be part of J&J's push into the aesthetic-medicine business. But the product's development was marked by fits and starts. In recent years, J&J has kept pushing back the timeline for seeking regulatory approval.

This is a significantly bullish development for AGN (and, to a lesser extent, VRX) insofar as PurTox was a high-quality product candidate whose development was badly mismanaged, according to my sources. I first posted about PurTox more than ten years ago (#msg-1936203), which is itself an indication of just how badly this program was handled by Mentor and JNJ.

p.s. AGN closed +4% today.