(By Balaseshan) Allergan Inc. (NYSE: AGN), a multi-specialty health care company, said it has agreed to buy topical aesthetics skin care business of privately-held SkinMedica Inc. for $350 million up-front.
The acquisition does not include the SkinMedica Colorescience aesthetic make-up line. SkinMedica will be spinning out the Colorescience business in connection with the closing of the acquisition.
The business includes a variety of "physician dispensed" non-prescription aesthetic skin care products and prescription products. Allergan will also pay SkinMedica an additional $25 million contingent upon the acquired products achieving a specific level of net sales.
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Following the acquisition, Allergan plans to operate SkinMedica as a separate global business and will leverage a number of Allergan's existing preferred customer programs with the SkinMedica product line to provide additional benefits to physicians and patients.
"The acquisition of SkinMedica will nicely complement our existing facial aesthetics 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," said David Pyott, Chief Executive of Allergan.
Bob Rhatigan, who currently serves as Senior Vice President - Facial Aesthetics of Allergan, will assume the role of Senior Vice President, General Manager and Chief Executive, SkinMedica.
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Mary Fisher, current Chief Executive of SkinMedica, will join Allergan and assist Rhatigan in the acquisition integration to ensure the maximization of revenue building opportunities.
The Allergan topical aesthetics sales force and the SkinMedica sales force will continue to represent their respective product lines over the near term.
Following the completion of the acquisition, a larger and combined SkinMedica sales force will assume responsibility for the line of products including the revolutionary SkinMedica TNS product line, Allergan's Vivité product line and Latisse, the one and only FDA approved product to treat inadequate or not enough eye lashes.
The acquisition of SkinMedica's topical aesthetics skin care business is expected to close later this year.
AGN is trading up 0.94% at $88.78 on Friday. The stock has been trading between $78.42 and $97.09 for the past 52 weeks.