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SkinMedica Inc.

This article was originally published in Start Up

Executive Summary

SkinMedica Inc. is a specialty pharmaceuticals company focused on the skin care and dermatology markets. It is amassing a portfolio of branded prescription products and promising late-stage candidates, funded in part, by revenues from cosmeceutical sales.

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Dermagraft is often mentioned as an example of a failure in tissue engineering, illustrating the difficulty of achieving return on investment in this field. The product was only a market failure, however; clinicians say that it worked to heal difficult wounds, and that it was just a product ahead of its time. Now small company Advanced BioHealing has given new life to the bioengineered dermal substitute, abandoned by Smith & Nephew, by supporting it with the focus, and the unique marketing and manufacturing skills that tissue-engineered products require. In the process, it believes it has created assets and skill-sets from which other tissue-engineering start-ups might benefit.

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In a year that saw a number of significant private financings in dermatology, Chester Valley Pharmaceuticals Inc. was one of the standouts. The specialty pharma was formed in November 2004 by dermatology industry veterans Robert J. Moccia and Xavier Yon, and by private equity firm GTCR Golder Rauner LLC, which has made a $75 million equity commitment to the new company.

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