Allergan to Buy SkinMedica - Analyst Blog
19 Novembre 2012 - 6:14PM
Zacks
Allergan, Inc. (AGN) recently announced that it
has entered into an agreement with a privately held company,
SkinMedica, Inc. to acquire the latter’s topical aesthetics skin
care business. Allergan will make an upfront payment of $350
million to SkinMedica and additional milestone payments of $25
million on the achievement of certain sales targets by the acquired
products. The deal is expected to close by year end.
SkinMedica’s product portfolio includes several products for skin
care benefit (including enhancing skin appearance and reducing
signs of aging). SkinMedica's key product, Vaniqa (eflornithine
hydrochloride) cream 13.9%, is the only prescription product for
the reduction of unwanted facial hair in women approved by the US
Food and Drug Administration (FDA). We note that the deal will not
include SkinMedica Colorescience aesthetic make-up line, which
would be spun-off by SkinMedica.
SkinMedica’s products should complement Allergan’s facial
aesthetics portfolio, which currently includes Botox, Juvederm and
Latisse.
During the year a lot interested has been generated by the
dermatology business. In September 2012, Valeant
Pharmaceuticals International, Inc. (VRX) entered into an
agreement with to acquire Medicis Pharmaceutical
Corp. (MRX), a specialty pharmaceutical company engaged in
the development and marketing of products for dermatological and
aesthetic conditions. In July 2012, Novartis (NVS)
acquired Melville, New York-based specialty dermatology generics
company, Fougera Pharmaceuticals.
Our Recommendation
While we believe that the Allergan–SkinMedica deal makes strategic
sense, we remain concerned about Botox’s sales post re-entry of
Merz Pharmaceuticals’ Xeomin in the market. The March 2012
injunction against Merz Pharma is only valid till January 9,
2013.
We also note that the obesity intervention segment of Allergan has
performed disappointingly for the past few quarters. The company is
considering a potential sale of the obesity intervention segment as
an option in its efforts to maximize the returns from this
business.
We currently have a Neutral recommendation on Allergan, which
carries a Zacks #2 Rank (short-term Buy rating).
ALLERGAN INC (AGN): Free Stock Analysis Report
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Medicis (NYSE:MRX)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Medicis (NYSE:MRX)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
Real-Time news about Medicis Pharmaceutical Corp. (New York Stock Exchange): 0 recent articles
Plus d'articles sur Medicis