Allergan, a top manufacturer for several anti-aging treatments, has decided to purchase SkinMedica’s line of topical cosmetic skin care products for $350 million.
Pyott also added that the acquisition “will enable us to take a leadership position in the growing ‘physician-dispensed’ topical-aesthetics skin-care category.”
SkinMedica’s focus lies in both prescription and non-prescription skincare products. It’s best selling prescription is Vaniqa – the only product currently approved by the Food and Drug Administration (FDA) for the reduction of unwanted female facial hair.
Allergan, based in Irvine, CA, will pay SkinMedica an additional $25 million if the company’s products hit target sales goals.
Allergan Deal Expected to Close this Year
The deal, which is expected to close by the end of this year, will not include SkinMedica’s Colorscience makeup line. Colorscience will be sold when the purchase closes.
Once acquired, Allergan intends to operate SkinMedica as a separate global business. However, several of Allergan’s existing preferred customer programs will merge with the SkinMedica product line, making it a more attractive option for both doctors and end users.
Allergan’s senior vice president Bob Rhatigan will move over to SkinMedica to serve as its chief executive. While SkinMedica’s current CEO, Mary Fisher, will join Allergan to help Rhatigan encourage SkinMedica’s “revenue-building opportunities,” the company said.