Biotech Values

[Mufaso]

Allergan feature article in Barron’s this week gets things wrong on Revance's RT002. First, they state:

“What has alarmed investors is RT002, an early-stage biosimilar from Revance Therapeutics (RVNC). In December, Revance said two clinical trials performed well, and it recently signed a licensing deal with Mylan (MYL) to commercialize RT002.”

The MYLAN deal is not to commercialize RT002 but rather an agreement to develop a biosimilar. The Mylan deal is for a different (new) compound that mimics Allergan’s Botox and its associated shorter duration.

They go on to quote Michael Kon, a portfolio manager at Golub Group and say that:

“the RT002 dosage that is being used is significantly higher than the level of Botox with which it was compared, Kon says.”

I think this quote misleading as it promotes the Allergan spin that Botox could get the longer duration Revance's RT002 has of 6mos by increasing the dosage. Increasing the dosage of Botox won't get a longer duration work as Dew has pointed out before.