Carol Flake Chapman's  Instablog

A very good friend in her early 80s recently had to use a prescription skin cream to remove some precancerous spots on her face. Her face turned red and blotchy for a week, but after the treatment, not only were the lesions gone; so were some wrinkles. I made a note, wondering if this was the usual result. If so, I thought, here's an inexpensive and effective wrinkle treatment, similar to Retin A, but stronger. And maybe a promising stock. And this morning, I came across a report confirming what I had suspected.

According to a study in the June issue of Archives of Dermatology, a skin cream containing fluorouracil, a chemotherapy medicine that treats precancerous skin patches, also reduced sun damage and wrinkles on the faces of 21 people who used the drug. Researchers saw improvements over 24 weeks in dark spots, yellow skin tone and hyperpigmentation, according to the study. The fluorouracil caused the skin to become red and irritated, making it peel as it worked to eliminate unhealthy skin, study authors said.

The result was consistent with my friend's experience, who described her face as looking like raw hamburger for a few days. She was pleasantly surprised, however, by the quality of her skin after it healed.

Doctors use cream with fluorouracil, which is available as a generic and under the brand name Efudex from Valeant Pharmaceuticals International (VRX), to treat skin lesions caused by intense sun exposure. Those spots, called actinic keratoses, are considered to be precancerous. Lead study author Dana Sachs told a reporter she’s not sure if fluorouracil would reduce wrinkles in those with healthy skin and that a study is needed to answer that question. Sachs, an associate professor of dermatology at the University of Michigan in Ann Arbor, said that the study says only that it works for moderate-to-severe sun damage. That benefit also comes with a drawback, she said, emphasizing that the inflammation and irritation in the skin are necessary in order to gain the improvement. She told an interviewer, “This is a rough treatment.”

This was the first study to show that fluorouracil cream improves sun-damaged skin, which includes dark spots, hyperpigmentation and sallow complexion as well as wrinkles. I looked at the fundamentals and valuation of Valeant Pharmaceuticals, and found that it rates about a B. But that doesn't include any benefits yet from this new study. Analysts give it a price target of $27 a share, although, again, that doesn't reflect any potential boost from the study. I also saw a recent pattern of insider buying at a price close to its current price of just under $23

The two main questions that affect future sales of the cream for cosmetic purposes are whether it will work on women with healthy skin, and whether women will be willing to accept the inconvenience of a very red face for a week in order to gain the benefits. But then nearly every woman over a certain age has sustained some sun damage. That's a large group of potential users. And from my experience, with friends who are willing to undergo hours on a operating table for a facelift, or two weeks of seclusion following a chemical peel, a week or so of redness is a minor inconvenience by comparison.

It's important to note that within 10 weeks of starting the cream, 19 of 20 participants in the study said the sun damage to their skin was improved. Also, 16 of 19 said their wrinkles were improved, including 8 who called that benefit “mild.” Although 12 of 19 patients reported the treatment was uncomfortable, 17 said they would be willing to undergo the therapy again, according to the authors

Women are willing to undergo some discomfort and inconvenience for the sake of appearances. Just look at enduring popularity of spike heels.