Meet Botox’s First Rival: Daxxify
The facial injection drug Botox has controlled the aesthetic market ever since it got FDA approval to treat frown lines in 2002.
From that point, it has enjoyed very little competition in the $3.2 billion US market for facial injectables. This lack of competition is partly why sales of Botox sit at a hefty $862 million through the first half of this year, which translates to over 50% market share.
This profit puppy is currently owned by the pharmaceutical giant AbbVie (ABBV), after it acquired Allergan for $63 billion in 2019. Now, just three years after this acquisition, Botox might have to go head-to-head with a new wrinkle remover.
A Better Botox?
California-based Revance Therapeutics (RVNC) got FDA approval on Thursday for its new anti-wrinkle injection, Daxxify. From the early test results, Daxxify looks like a formidable opponent.
Studies have shown that Daxxify can reduce the severity of wrinkles and frown lines for six months, which is more than double that of Botox. Since it’s long-lasting, users also only need two treatments of Daxxify per year.
Thanks to this advantage, physicians expect Daxxify to reach half of Botox’s size within three years. If this projection holds, it means that Revance Therapeutics can expect to earn $1 billion in sales by 2025. It’s not yet clear how much Daxxify will cost, but it will likely be more expensive than Botox.
What to Watch For
For Botox users, this competition could be a good thing. Daxxify purports itself as a better product, and pricing pressure will ensue now that both companies are competing to win market share.
On the flipside, AbbVie shareholders may not be as enthusiastic about this competition. It could realistically take a big chunk out of AbbVie’s sales. That said, AbbVie posted revenue of $56.2 billion in 2021. While Botox is one of the firm’s most important products, it still makes up just a small fraction of AbbVie’s total income.
Plus, FDA approval is just the first step for Revance Therapeutics. Daxxify still has a lot to prove if it wants to disrupt the market leader.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.