Allergan stock dives on Botox warning
FDA warns of some deaths in children with cerebral palsy using Botox, Myobloc as treatment for muscle spasms.
NEW YORK (CNNMoney.com) -- Allergan's stock took a dive on Friday after the Food and Drug Administration said its Botox had been linked to severe side-effects, including death in children being treated for cerebral palsy.
The FDA said that Botox, and the similar product Myobloc from Solstice Neurosciences, "have been linked in some cases to adverse reactions, including respiratory failure and death, following treatment of a variety of conditions using a wide range of doses."
Botox is primarily used as an injectable cosmetic drug to remove wrinkles, but is FDA-approved for other uses, such as underarm sweating and certain neurological conditions.
The FDA said the "most severe adverse effects were found in children treated for spasticity in their limbs associated with cerebral palsy." The FDA also said that Botox and Myobloc are not approved for this use, in either children or adults.
Allergan's (AGN) stock fell 6% on the news.
Allergan spokeswoman Caroline Van Hove said children with cerebral palsy have much larger doses injected into their calf muscles than those used by men and women for wrinkle-removing.
Also, Van Hove said that Botox has not been proven to cause the side-effects mentioned in the FDA warning, even though the FDA said there is a "link" between the side-effects and the products.
Solstice also released a statement saying the FDA did not blame Myobloc for causing the side-effects.