Meet Botox’s First Rival: Daxxify

Botox’s Domination

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.

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