US specialty pharmaceutical company Allergan Inc today agreed to buy a unit from SkinMedica Inc, for $350 million in order to expand the range of its skin care products.
The Irvine, California-based company said that it will pay an extra $25 million if certain sales goals are met.
Allergan is buying the topical aesthetics skin care business of privately-held SkinMedica, including a variety of ''physician dispensed'' non-prescription aesthetic skin care products and prescription products.
The acquisition, which is expected to close later this year, does not include the SkinMedica Colorescience aesthetic make-up line. SkinMedica will be spinning out the Colorescience business post closing of the deal.
Allergan, which is currently exploring a sale of its obesity intervention business, (See: Allergan explores sale of obesity intervention business) said that the acquisition of SkinMedica will complement its existing facial aesthetics business, which includes products such as anti-wrinkle treatment drug Botox, Cosmetic, Juvederm, and Latisse.
It will also enable it to take a leadership position in the growing 'physician dispensed' topical aesthetics skin care category, and allow it to expand its product portfolio to its existing base of physician customers and their patients.
Following the acquisition, Allergan plans to operate Carlsbad, California-based SkinMedica as a separate global business, and a larger and combined SkinMedica sales force will sell products including SkinMedica 'sTNS products, Allergan's Vivite product line and Latisse, the only US Food & Drug Administration approved product to treat inadequate or not enough eye lashes.
With a market capitalisation of $21.18 billion, and 2011 revenues of $5.4 billion, Allergan is a global specialty pharmaceutical company whose product ranges include, ophthalmic pharmaceutical, dermatology and neurological products.