The FDA’s Approval Of RHOFADE Cream From Allergan Plc (NYSE:AGN): Will It Match The Market Competition?

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The FDA’s Approval Of RHOFADE Cream From Allergan Plc (NYSE:AGN): Will It Match The Market Competition?

The U.S. Food and Drug Administration (FDA) has endorsed RHOFADE™ cream from Allergan Plc (NYSE:AGN). The approval was on the basis of two clinical studies that took to evaluate the primary efficacy endpoint on day 29. The FDA’s endorsement means that the cream can now be used for the topical treatment of persistent facial erythema, which is more common in adults.

Records have it that approximately 16 million Americans suffer from rosacea with constant facial redness being the most notable sign of rosacea. Some of the common triggers of what resembles a flushing or sunburn include stress, weather, food products or exposure. According to an NRS survey, these symptoms are more pronounced in people between the ages of 30-60years.

But Allergan has a tall order ahead

Speaking about the approval, Chief R&D Officer of Allergan, David Nicholson said, “We know persistent facial erythema associated with rosacea is a challenge for patients and physicians and having options can help in treating the disease. RHOFADE™ is the first and only alpha1A adrenoceptor agonist approved for persistent facial erythema associated with rosacea in adults.”

While the new prescription treatment may sound very exciting, the Dublin drug maker will have to fight back the already available laser treatments. There are a handful of good treatments and the Rhofade may work incredibly well. But data from the 2015 American Society for Dermatologic Surgery survey reveal that 51,630 laser treatments for facial redness are carried out annually. So the question is, will Allergan match this number with its new cream?

But there haven’t been many options available to address persistent facial erythema

 Allergan is one of the leading global pharmaceutical companies in the industry and has been doing well over time.  Apparently, the entry of the RHOFADE, which will be commercially available from May 2017, may just be timely. For a while now physicians have not been able to efficiently address the facial erythema for lack of treatment options. The best they have been doing is helping their patients manage the triggers. That means the availability of RHOFADE is a plus to the delivery of their goals.

In the meantime, Allergan’s stock closed at $214.58 a decline of $1.98 or 0.91%