Watch out Bare Escentuals
On Friday, the Food and Drug Administration approved Allergan's
Small eyelashes are far from a small market -- the global market is around $3.7 billion. But Allergan is going to have a hard time capturing much of that market in this economy, considering the drug will run $120 a month. You have to look no further than how poorly cosmetic-laser makers like Syneron Medical
But this economy will eventually rebound and Allergan could ultimately hit its target of $500 million per year in sales once the vainness returns. By comparison, Allergan is expecting nearly $1.3 billion in sales from Botox this year.
Ironically, Latisse was originally designed to treat glaucoma and is sold under the brand name Lumigan, but the longer eyelashes were discovered as a side effect. It's not all that weird to have the same active ingredient sold under two brand names. For instance Pfizer's
Being dependent on discretionary spending, Allergan is likely to continue to tread water until the economy improves, but investors thinking about the long term don't really need to worry about their mascara running; they can ride the waves without crying.
Syneron Medical is a selection of the Motley Fool Hidden Gems Pay Dirt and Rule Breakers services. Bare Escentuals is a recommendation of both Motley Fool Hidden Gems and Rule Breakers. Pfizer and Eli Lilly are Income Investor recommendations. Pfizer is also an Inside Value selection and the Fool owns shares. Try any of our Foolish newsletters today, free for 30 days.