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Allergan, Inc. announced it has entered into a definitive agreement with SkinMedica, Inc. to acquire the privately held company's topical aesthetics skin care business. Under the terms of the agreement, Allergan will pay SkinMedica $350 million for the business, which includes a variety of "physician-dispensed" non-prescription aesthetic skin care products and prescription products. Allergan will also pay SkinMedica an additional $25 million contingent upon the acquired products achieving a specific level of net sales. The acquisition, which is expected to close later this year, does not include the SkinMedica Colorescience aesthetic makeup line. SkinMedica will be spinning out the Colorescience business in connection with the closing of the acquisition.
"Allergan is widely recognized for our leadership in the facial aesthetics area," said David E.I. Pyott, chairman of the board, president and CEO, Allergan. "The acquisition of SkinMedica will nicely complement our existing facial aesthetics business, which includes products such as Botox Cosmetic, Juvederm and Latisse, and will enable us to take a leadership position in the growing 'physician-dispensed' topical aesthetics skin care category. 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 patients."
Following the acquisition, Allergan plans to operate SkinMedica as a separate global business and will leverage a number of Allergan's existing preferred customer programs with the SkinMedica product line to provide additional benefits to physicians and patients. Bob Rhatigan, who currently serves as senior vice president, facial aesthetics, Allergan, will assume the role of senior vice president, general manager and chief executive, SkinMedica. Mary Fisher, CEO of SkinMedica, will join Allergan and assist Rhatigan in the acquisition integration to ensure the maximization of revenue building opportunities. The Allergan topical aesthetics sales force and the SkinMedica sales force will continue to represent their respective product lines in the near term. Following the completion of the acquisition, a larger and combined SkinMedica sales force will assume responsibility for the line of products.