21 mars, 2005 16:52
What Price Vanity? About $2.8 Billion..Inamed and breast Implants
... Inamed, which is trying to convince regulators to allow silicone-based breast implants back on the market, is growing on soaring sales of its obesity products ...
CHICAGO (Reuters) - Skin products maker Medicis Pharmaceutical Corp. , on Monday said it agreed to buy breast implant maker Inamed Corp.Research for $2.8 billion to capitalize on the growing market for cosmetic treatments.
The deal is pegged on the fast-growing vanity market, fueled by demand from aging baby boomers and other image-conscious consumers, the companies said.
"It would create a one-stop shop for dermatologists and plastic surgeons," said Julie Schumacher Hoggatt, an analyst at Hibernia Southcoast Capital.
Inamed, which is trying to convince regulators to allow silicone-based breast implants back on the market, is growing on soaring sales of its obesity products, including a device used in lieu of gastric bypass surgery. Sales of breast implants made from other materials are also rising.
Both companies make wrinkle treatments and Inamed is working on a rival to Allergan Inc.'s popular Botox.
Shares of Santa Barbara, California-based Inamed rose about 3 percent on the Nasdaq on the news, while Medicis shares sank about 8 percent on the New York Stock Exchange.
The U.S. Food and Drug Administration will next month consider for the second time Inamed's bid to reverse a 12-year-old ban on silicone breast implants.
Some analysts questioned whether the deal would be as valuable if the FDA rejects the bid.
"If Inamed does not win approval of silicone breast implants in the U.S., this could be a negative," David Maris, a Banc of America analyst, said in an investor note.
Thousands of women said they suffered a range of conditions caused by the silicone implants, including autoimmune diseases such as lupus and rheumatoid arthritis, leading to a slew of lawsuits and recalls of the products made by several manufacturers.
Inamed last week disclosed that the Securities and Exchange Commission has begun a formal private investigation related to one style of its silicone gel-filled breast implants.
Under the deal, Inamed stockholders will receive 1.4205 shares of Medicis common stock and $30 in cash for each share of Inamed common stock. Based on Medicis' closing price on Friday, the deal is worth $75 per Inamed share, or about $2.8 billion overall, the companies said.
The deal represents a 13 percent premium over Inamed's Friday close of $66.24 on the Nasdaq. Scottsdale, Arizona-based Medicis said the deal would reduce 2005 profit and add slightly to earnings in 2006. Both forecasts do not include new products.
In January, Medicis said it expects fiscal 2005 earnings of $1.43 per share excluding special charges.
Analysts on average expect Medicis to earn $1.44 in fiscal 2005 and $1.64 in fiscal 2006, according to Reuters Estimates.
The combined company will have annual revenue of more than $700 million, operations in more than 12 countries, businesses in over 60 countries, and about 1,500 employees.
The companies expect the transaction to close by the end of 2005. Deutsche Bank Securities is financial advisor to Medicis; JPMorgan is financial advisor to Inamed. Latham & Watkins are attorneys for Medicis, and Morrison & Foerster are counsel to Inamed.
Shares of Medicis fell $2.66, or 8.4 percent, to $29.02, while Inamed rose $2.20, or 3.3 percent, to $68.44. (Chicago Newsdesk, 312-408-8787)
