Medicis' Liposonix Launch Eyed for 2011; Ultrasound Device Will "Melt" Away Fat

(MoneyWatch)  Medicis' Liposonix, a non-invasive fat-removing device, "should be enormous," according to Jefferies & Co. analysts Corey Davis and Oren G. Livnat, writing in a note to investors. Liposonix won't be launched until 2011:

This technology could be a major aesthetic breakthrough. It is now finishing Phase III to remove fat from troublesome areas with a noninvasive ultrasound technology that can remove "inches" from the waistline. If successful, we think this could have $300 million potential. The recent FDA review of its 510k process, probably rules out a 2010 launch.

It's an interesting approach -- the vast majority of other drug companies have gone with chemical approaches to the obesity question. The device allegedly melts away fat. Medicis rival Allergan also has an obesity device, the Lap-Band. It is not clear whether the two brands would compete directly.

Separately: Medicis' Dysport -- a new competitor to Allergan's Botox -- could take 30 percent of the $350-400 million market for botulinum toxin wrinkle removers, the Jefferies note said. Their assessment dovetails with that of a previous estimate by Leerink Swann.

• See previous coverage of Allergan and Medicis:
• Medicis' Solodyn Sales Stay Strong Despite Generic Challenges; Pay-to-Delay Works
• Could Allergan's Reliance on Stars Hurt It in War With Medicis?
• Medicis Q1: One Day's Generic Competition Cost Company Up to 17% of Solodyn Sales
• Allergan's Q1 Nightmare: Profit Down; Black Box Warning on Botox Vindicates an Old Nemesis; "It's All Medicis' Fault!"
• Allergan Could Lose a Third of Botox Market With FDA's Approval of Medicis' Dysport
• Medicis Doubled Pay of Exec Convicted of Off-Label Sales
• Medicis Employees Should Look Anxiously at Allergan Layoffs