SkinMedica invest in cosmeceuticals

SkinMedica - a specialty pharmaceutical company - is to receive financing to further expand its cosmeceutical pipeline. The company has entered a deal with existing, and new investors to sell $25.8 million of its Series D preferred shares.

"This financing exhibits the extremely high caliber of investors that SkinMedica has been able to attract and their belief in the potential for both our pharmaceutical and cosmeceutical product lines. We anticipate that the funding from this round will enable us to expand our pipeline and sustain the growth of our current products," said CEO of SkinMedica Rex Bright.

Funding will be used to expand the pipeline of pharmaceutical and cosmeceutical products and to fund business development activities including possible acquisitions of dermatological products and technologies.

SkinMedica, which develops and commercialises dermatology products, currently markets a line of cosmeceutical products including TNS Recovery Complex - with antioxidants, matrix proteins and soluble collagens - to reduce the signs of aging.

"SkinMedica's business model is sound and takes advantage of two highly desirable and growing markets in dermatology, pharmaceuticals and cosmeceuticals," said newly appointed MD Andrew Schiff.

US cosmeceutical sales reached $3.4 billion in 2002, according to market research company Freedonia Group, this is only a tiny fraction of the $185.2 billion US pharmaceutical market.