When Valeant Pharmaceuticals International Inc. (NYSE: VRX) and activist investor Bill Ackman made an unsolicited $46 billion bid to purchase Botox maker Allergan Inc. (NYSE: AGN) last week, investors got a glimpse of just how big the Botox market is globally.
And that market's potential is exactly why we have one of its newest players on our "Stocks to Buy" list…
You see, Money Morning's Defense & Tech Specialist Michael A. Robinson has been recommending a biotech stock that develops similar specialty products for dermatological applications. The company is Revance Therapeutics Inc. (Nasdaq: RVNC), and it's a stock that just hit the market on Feb. 6.
Its most well-known product, RT001, uses the same botulinum toxin as Botox and is currently in advanced clinical trials. Rather than being injected into the patient, however, the product is applied topically.
Because the product is applied as an ointment, it's designed to reduce or eliminate facial lines like "crow's feet" and "laugh lines." The product is also perfect for consumers who want botulinum toxin treatment, but have an aversion to needles. For traditionalists, Revance is also working on a Botox-like injectable product as well, RT002.
On RVNC's IPO date, the stock jumped nearly 68% in its first day of trading. Since then, the stock has climbed 119% from its initial offer price of $16 per share. The company raised $96 million in its initial public offering, which was well above the $75 million it had hoped to raise.
And even though RVNC stock has more than doubled from its offer price in less than three full months, this biotech pick still has room to grow…
Why Revance Therapeutics (Nasdaq: RVNC) Is on Our "Stocks to Buy" List
RT001 is still in development and has not yet received approval from the Food and Drug Administration (FDA). While the FDA approval process is arduous, companies that pass the approval stages and commercialize their drugs often see a significant spike in their stock price.
For example, Pharmayclics Inc. (Nasdaq: PCYC) was worth about $25 per share in 2012 before its mantle cell lymphoma (MCL) drug received FDA approval. After the FDA okayed the drug, the stock peaked at $154 in early 2014.
Bringing a Botox competitor to market, and one that is not injectable, would bring huge gains for RVNC stock.
While RT001 is currently the most significant product Revance is developing, it's not the only drug the company owns…