Apr. 2, 2009 (Investor's Business Daily) -- The stock of steady grower Aller-gan (AGN) jumped 13% on March 24 on reports that drug giant GlaxoSmithKline (GSK) might bid for it.

The stock has held most of its gain since then.

Allergen is best known as the maker of wrinkle-smoother Botox, the source of $1.31 billion in 2008 sales, a third of Allergan's revenue.

But the company has a potential new star in Latisse, which was introduced amid much fanfare last week.

Latisse is the result of a serendipitous discovery: Its glaucoma drug Lumigan has the side effect of making patients' eyelashes longer.

One analyst expects Latisse to generate $30 million in 2009 revenue, with sales peaking at $300 million to $500 million in several years.

Allergan is an attractive acquisition because a third of its revenue comes from consumer-oriented cosmetic products bought with cash rather than reimbursed by insurance companies.

Latisse costs $120 a month when applied daily. Users must continue applying it or the effect reverses.

Botox, which costs $400 for a single injection, must be repeated every three or four months.

Allergan has enjoyed seven straight years of earnings growth. It has an EPS Stability Rating of 3.

In the latest quarter, earnings were 76 cents a share, a 27% increase from the year-ago quarter. Revenue fell by 3%. Analysts expect earnings growth to trail off the next few quarters.

Analysts tracked by Thomson Reuters see 2009 earnings of $2.71 a share, a 5% increase from the prior year. In 2010, they forecast $3.05, a 13% increase.