IRVINE, Calif.—Allergan Inc. announced recently that it hasentered into a definitive agreement to acquire privatelyheld SkinMedica Inc., with an eye specifically toward the company's topical aesthetics skin care business. Under the terms of theagreement, Allergan will pay SkinMedica $350 million up-front, subject tocertain adjustments, for the business, which includes a variety of whatAllergan calls "physician dispensed" non-prescription aesthetic skin careproducts and prescription products.
Allergan will also pay SkinMedica an additional $25 millioncontingent upon the acquired products achieving a specific level of net sales.The acquisition, which is expected to close later this year, does not includethe SkinMedica Colorescience aesthetic makeup line. Rather, SkinMedica will spinout the Colorescience business in connection with the closing of theacquisition.
60-year-old multispecialty healthcare company Allergan toutsapproximately 10,500 employees globally, with a presence in more than 100countries, and its "rich and ever-evolving portfolio of pharmaceuticals,biologics, medical devices and over-the-counter consumer products."
"Allergan is widely recognized for our leadership in thefacial aesthetics area," said David E.I. Pyott, president, CEO and chairman of Allergan."The acquisition of SkinMedica will nicely complement our existing facialaesthetics business, which includes products such as Botox Cosmetic, Juvederm,and Latisse, and will enable us to take a leadership position in the growing'physician dispensed' topical aesthetics skin care category. Most importantly,the acquisition will allow us to expand our product portfolio to better meetthe needs of our existing base of physician customers and their patients."
Allergan's plans call for operating SkinMedica as a separateglobal business after the acquisition, and it "will leverage a number ofAllergan's existing preferred customer programs with the SkinMedica productline to provide additional benefits to physicians and patients."
Bob Rhatigan, who currently serves as senior vice presidentof facial aesthetics at Allergan, will assume the role of senior vice president,general manager and chief executive of the new SkinMedica. Mary Fisher, CEO,SkinMedica, will join Allergan and assist Rhatigan in the acquisitionintegration "to ensure the maximization of revenue building opportunities."
Reportedly, the Allergan topical aesthetics sales force andthe SkinMedica sales force will continue to represent their respective productlines, at least for the near term foreseeable future. Allergan adds that followingthe acquisition, "a larger and combined SkinMedica sales force will assumeresponsibility for the line of products including the revolutionary SkinMedicaTNS product line, Allergan's Vivité product line and Latisse, the one and onlyFDA approved product to treat inadequate or not enough eye lashes.