Phase 3 clinical trials for Xiaflex showed highly statistically significant levels of improvement in the appearance of cellulite with treatment, as measured by the trial’s primary endpoint. However, Risinger felt Phase 3 trials were not as impressive as Phase 2 trials:

Morgan Stanley Analyst David Risinger on Endo’s Xiaflex

Risinger also compared the results to clinical trial results of Allergan’s Botox – completely different drug:

CCH for cellulite would have to priced much lower than Xiaflex for medical condition, but it is unclear what Endo would be able to charge for CCH given Botox as a precedent. Additionally, even if Endo could price CCH lower than Xiaflex, Endo would have to limit risk of diversion of CCH to usage for Xiaflex indication, which would adversely impact Xiaflex sales.

If approved, Xiaflex would meet a highly unmet need. Management intimated an ability to disrupt the $15 billion aesthetics market. In the Shock Exchange’s opinion, “Highly statistically significant improvement” was consistent with management’s assessment of Xiaflex’s disruption potential.

Black Beauty Experts Dissent With Morgan Stanley On Xiaflex

Last week black beauty experts dissented with Morgan Stanley’s Risinger on Endo’s Xiaflex. They were bullish on the product. These comments came from consumers who would actually use the product. The video of their conversation is below.




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