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Pharmaceutical industry

Medicis Pharmaceutical to Acquire Inamed in $2.8 Billion Deal

Strategic Insights

— 1 min read

The battle for the cosmetic dollar in the US has taken a significant turn with Medicis Pharmaceutical announcing its intention to acquire Inamed, a manufacturer of breast implants, for $2.8 billion. The merger aims to create a stronger rival to Allergan, the maker of the popular Botox anti-wrinkle treatment. The combined company will have a broad range of vanity-driven products, from skin care to anti-obesity treatments and breast implants.

Key Takeaways:

  • Medicis Pharmaceutical will acquire Inamed, a maker of breast implants, for $2.8 billion, creating a stronger rival to Allergan, the maker of Botox.
  • The combined company will have a broad portfolio of products, including skin care, anti-obesity treatments, and breast implants.
  • Inamed is seeking approval from the FDA to market silicone breast implants in the US for cosmetic use, which was banned in 1992 due to concerns over health risks.
  • The FDA panel is expected to discuss Inamed's request in June, following a previous decision in 2003 that silicone implants were safe for sale.
  • The acquisition comes as Allergan's Botox sales reached $705 million in 2005, with RBC Capital Markets analyst Ken Trbovich noting that Medicis and Inamed's combined sales force could provide a highly competitive threat to Allergan.
  • The FDA is also reviewing Inamed's request to sell silicone breast implants in the US, with regulators in Canada expected to discuss loosening restrictions on such implants.
  • Inamed's breast implant sales accounted for 56% of the company's 2004 revenue, which was $384 million.
  • The deal's biggest unknown is the potential risk associated with Inamed's breast-implant business, which Medicis maintains would not kill the deal.

Sources:

  • "Medicis to Buy Breast-Implant Firm for $2.8 Billion" by Julie Schmit, USA Today (no date mentioned in the source)
  • RBC Capital Markets analysis by Ken Trbovich, mentioned in the source text (no specific date or publication mentioned)
  • Various unnamed Wall Street analysts and industry experts cited in the source text.

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