This is not what makers of wrinkle-reducing skin-plumpers were looking for.
First, their stocks slumped more than the S&P 500 on worries that customers will cut back on discretionary spending. And now the FDA is warning about potential side effects of their cosmetic drugs.
The FDA didn't name names, but Allergan
As with all the recent FDA announcements about potential side effects, investors need to figure out how much this could really hurt sales of the products. We'll get a better idea of the severity at tomorrow's FDA advisory committee meeting, but my guess is that these reports won't hamper sales much. This is much more like TNF inhibitors -- Amgen
While the notification of the warnings isn't likely to hurt sales, I can't see a recovery anytime soon either. Much like their cosmetic-laser counterparts, makers of cosmetic pharmaceuticals are just going to have to wait out the downturn in the economy and hope we have a nice V-shaped recovery.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson is a selection of the Income Investor newsletter. The Fool's disclosure policy thinks wrinkles are sexy -- on a shar pei.