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SAC Capital said it believes certain Inamed products, including its silicone breast implants, are well defined and have the potential to provide substantial ...

SAC Capital Advisors and its affiliates, which hold a 6.4 percent stake in Inamed Corp., on Monday said it opposes the proposed acquisition of Inamed by Medicis Pharmaceutical Corp. under the current terms of the deal.

In a U.S. regulatory filing, SAC Capital said the terms do not provide "full and fair value" to shareholders of Inamed, which makes breast implants and other cosmetic products, and will deprive them of their ability to maximize the return on their investment.

SAC Capital said in the filing with the Securities and Exchange Commission that it sent a letter to Inamed management on Friday advising the company of its intention to vote against the deal.

SAC Capital said it recognizes Inamed's strong pipeline and Medicis's distribution network.

"However, because we believe that Inamed's shareholders are not receiving a just proportion of the new company following the merger, we plan to vote against the merger as it is currently proposed," SAC Capital said in a letter to Inamed chairman and chief executive Nicolas Teti.

Medicis, which makes a variety of skin products, had agreed to acquire Inamed in a deal worth $2.8 billion.

Inamed's spokesman, Charles Huiner, had no comment on the letter, and a spokeswoman for Medicis could not be reached for comment.

SAC Capital said it believes certain Inamed products, including its silicone breast implants, are well defined and have the potential to provide substantial growth to Inamed and the combined companies once regulatory approvals are given, which it said is highly likely.

In contrast, SAC Capital said, Medicis's product pipeline is not well defined and its prospects for regulatory and commerce success are uncertain in light of the recent setbacks of many dermatology products currently under review by the U.S. Food and Drug Administration.

The investment managers also said they believe Medicis's core business of topical and systemic dermatology products is at risk from generic competition.

"The proposed merger would, in essence, involve Inamed's shareholders swapping their exposure to Inamed's promising pipeline for Medicis's uncertain pipeline and declining core business," SAC Capital said.

In early afternoon trading, Inamed shares were up $1.65, or 2.2 percent, at $76.52 on Nasdaq, and Medicis shares were up 28 cents at $31.68 on the New York Stock Exchange.