Markets

J&J Axes Evolence, Its "Too Lumpy" Dermal Filler; Allergan, Medicis Rejoice

By Jim Edwards

Updated on: November 9, 2009 / 11:18 AM EST / MoneyWatch

Johnson & Johnson (JNJ) has stopped marketing wrinkle filler Evolence, a little more than a year after it was launched. Doctors were informed of the news on Nov. 3.

Kudos to Allergan (AGN) and Medicis (MRX) , marketers of Juvederm and Restylane, respectively: The rivals have successfully seen off the much larger J&J, which bought its way into the category in 2008 with the acquisition of Mentor Corp. for $1 billion.

The victory will be especially savored at Medicis, the smallest of the companies. (Mea culpa: I suggested last December that Medicis could be the least well-placed company to survive a three-way in this category -- I was wrong!)

Evolence seems to have died because it was a lousy product. RealSelf.com:

Dermatologist Dr. Mary Lupo explains that "Evolence is a very stiff product...It also must be injected with a larger needle and requires a lot of massage to prevent lumping, so bruising is very likely. Lumping is a real possibility." Lupo adds that patients should "Proceed with caution."

Check out the consumer reviews -- they're mostly thumbs-down.

Separately -- but not unrelatedly -- Medicis had a fabulous Q3 2009. Revenue was up 31.5 percent to $152 million, mostly because the company has successfully dealt with challengers to its Solodyn acne patent.

Non-acne products at Medicis (which includes Restylane) were up 4.2 percent to $35.5 million, but those sales include Medicis' new Botox competitor, Dysport. Which suggests that revenues have further to rise before Dysport reaches its plateau and the dropout of Evolence is fully priced in.

Adding to Medicis' delight: Allergan's sales in its facial aesthetics category declined 4.6 percent to $53.7 million over the same period. Is Medicis' discount strategy working?