FCSC
Dew Diligence Quote: VRX is even less likely than MRX to be interested in a product like laViv.
That's preposterous. But I'm looking past the cosmetic indication. The "salient point" is that if Valeant acquires MRX, it will have the acne treatment, SOLODYN. Here's a little about SOLODYN from the Medicis earnings call transcript:
Quote:In terms of brand highlights, SOLODYN remains the most prescribed branded dermatology product in the U.S. it has been so since September 2008 and leading dollars of production of any dermatology product worldwide and this has been so since March of 2010.
It's fair to assume that the FDA Approval of LaViv for nasolabial folds bodes well for an approval in the acne scarring indication. If and when such an approval is given, the same dermatologists prescribing SOLODYN to treat acne will be able to prescribe LaViv to heal any scars left. In such a scenario, insurance reimbursement is likely, depending on the plan. That would pretty much throw your previous argument of LaViv profitability out the window as they could justify charging a lot more to insurance companies than to consumers. They also don't have to worry about generics driving down price as they have patent security for the next decade.
And, in the meantime, if FCSC stays cash blow break even on the cosmetic front (which would probably only require a few thousand treatments of LaViv), they can use the $22 million to expand manufacturing capacity and finish the acne trials which could both be completed by the middle of 2012.
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