SkinMedica’s business includes a variety of physician dispensed and non-prescription aesthetic skin care and prescription products, although the deal does exclude SkinMedica’s Colorscience aesthetic make-up line, which will be spun off in a separate deal.
Allergan has also said that there is a further $25m pledged as part of the deal, taking the total acquisition price up to $400m, if SkinMedica achieves certain interim sales targets.
Allergen moves into hair removal
SkinMedica’s primary prescription drug is Vaniqa cream, which is a US approved drug for reducing women’s unwanted facial hair, an area where Allergean does not have any exposure.
It also produces a range of aesthetic skin care lines, including the Age Defense brand, which includes a Vitamin C + E Complex, Tri-Retinal Complex, and the TNS Regeneration System, as well a Post-Procedure System that targets post cosmetic procedure treatment.
"Allergen is widely recognized for our leadership in the facial aesthetics area,” said CEO and Chairman David Pyott.
"The acquisition of SkinMedica will nicely complement our existing facial aesthetics business, which includes product such as Botox Cosmetics, Juvederm and Latisse. Most importantly, the acquisition will allow us to expand our product portfolio to better meet the needs of our existing base of physician customers and their patents."
A small but targeted acquisition
Although the acquisition of SkinMedica is small compared to Allergan’s multi billion dollar annual turn-over, analysts believe the deal represent a significant bolt on acquisition that will serve to bolster the company’s portfolio in several key areas where it currently has limited offerings.
In 2011 Allergan had a sales turnover of $5.7bn and a market capitalization of approximately $26bn, mainly on the back of its Botox brand. The SkinMedica acquisition represents just 1.3 percent of Allergan’s estimate market capitalization.