Allergan to Pay $350 Million for SkinMedica Business
Allergan Inc. (AGN), the Botox maker weighing the sale of its obesity unit, will expand the range of its skin care products by agreeing to purchase a unit from SkinMedica Inc. for $350 million.
SkinMedica’s products include a prescription treatment for reducing female facial hair and lotions to reduce the appearance of wrinkles. The closely held company will receive an extra $25 million if certain sales goals are met, Irvine, California-based Allergan said in a statement today.
Allergan’s range of skin care products includes wrinkle reducers Botox and Juvederm. The agreement doesn’t include SkinMedica’s Colorescience make-up line, which will be spun out as a separate company. Last month, Allergan it may sell the obesity business, which includes the Lap-Band weight loss device, because of falling sales.
“The acquisition will allow us to expand our product portfolio to better meet the needs of our existing base of physician customers and their patients,” said Allergan Chief Executive Officer David Pyott in a statement.
Allergan rose less than 1 percent to $88.71 at the close of New York trading. The shares had gained 6.9 percent in the past 12 months.
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