Inamed and Medicis Change the Face of the Aesthetic Market
The $2.8 billion merger of Medicis Pharmaceutical Corp. a specialty pharma focusing on dermatology with sales of $303 million, and Inamed Corp., a cosmetic surgery company with sales of $384 million creates the largest plure-play aesthetics company focusing on physician markets, and a base for future consolidation in a fragmented and rapidly growing market.
You may also be interested in...
A deep-pocketed syndicate--Orbimed Advisors, Clarus Ventures, TIAA-CREF and Goldman Sachs--supply $80 million to start Sientra, a seller of silicone breast implants and other aesthetics devices.
A $12-billion market and growing, the field of aesthetic medicine has exploded with new treatments and techniques for improving and restoring the quality, health and appearance of aging skin. Techniques such as tissue tightening, skin resurfacing, cellulite treatments, dermal augmentation, and fat removal are just some of the new advancements in aesthetic medicine that were highlighted at the 2007 American Academy of Dermatology meeting.
The aesthetic market is becoming somewhat incestuous, with all of its major players current embroiled in some sort of takeover attempt on the businesses of the others. Back in March, dermatology specialist Medicis made an offer to acquire Inamed, the only pure-play in the medical aesthetics market. Some months later, Mentor, Inamed's rival in breast implants, made an offer for Medicis. Now Allergan, "the Botox company," is vying for Inamed with what it believes is a better offer. That all four publicly traded companies are trying to merge with one another highlights just how hot the aesthetics market is today. The bidding war also highlights the unique characteristics of the medical aesthetics specialty, in terms of the blurring between devices and drugs.