(SLTM) Solta Medical Buying Medicis Unit

Aesthetic laser treatments provider Solta Medical (SLTM) has agreed to acquire Medicis Technologies Corporation, a unit of specialty pharmaceutical company Medicis Pharmaceutical Corporation (MRX), in a deal worth roughly $35 million.

Under the agreement, Soltawill pay $15 million to Medicis upon the completion of the deal. It will also pay up to $20 million contingent upon the attainment of near-term regulatory milestones in the U.S. Moreover, Solta would make additional future payments subject to the achievement of certain commercial milestones.

The acquisition, which is subject to customary closing conditions including antitrust clearance, is expected to close in fourth-quarter 2011. Solta plans to finance the transaction through its existing cash and credit facilities.

The acquisition provides Solta with Medicis’ LIPOSONIX system, which uses advanced non-invasive ultrasound energy to reduce abdominal fat. It was recently approved in the U.S. for waist circumference reduction. LIPOSONIX is not a replacement for liposuction surgery but offers a non-surgical approach to reduce waist circumference when diet and exercise are not enough. It is an effective treatment with a proven safety profile.

The LIPOSONIX is also currently marketed in Canada, European Union and Japan. Medicis is divesting this business to focus on its core medical dermatology and facial aesthetics businesses.

The acquisition, which bodes well for Solta’s business model, will enable  it to foray into the large and growing non-invasive fat reduction market. The company expects the transaction to be accretive to earnings within 12 months of the deal closure.

California-based Solta Medical develops and markets devices for aesthetic applications and is a global leader in the medical aesthetics market. Its leading brands for skin tightening and skin resurfacing are Thermage (a non-invasive radio frequency procedure for tightening and contouring the skin) and Fraxel (a novel class of skin rejuvenation therapy). Solta acquired aesthetic devices maker Aesthera Corporation in March 2010. The acquisition added the Isolaz brand of products for treating acne to Solta’s portfolio.

Solta derives its revenues primarily from the sale of its systems, treatment tips and other consumables. The company competes with Allergan Inc. (AGN), Syneron Medical (ELOS), Cutera (CUTR) and Palomar Medical Technologies (PMTI).

ALLERGAN INC (AGN): Free Stock Analysis Report

CUTERA INC (CUTR): Free Stock Analysis Report

SYNERON MED LTD (ELOS): Free Stock Analysis Report

MEDICIS PHARM-A (MRX): Free Stock Analysis Report

PALOMAR MED TEC (PMTI): Free Stock Analysis Report

SOLTA MEDICAL (SLTM): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | | | | | | | | | | | Healthcare | Medical Appliances & Equipment

RSS feeds: AGN | Allergan Inc. | Cutera Inc | CUTR | ELOS | Medicis Pharmaceutical Corporation | MRX | Palomar Medical Technologies Inc | PMTI | SLTM | Solta Medical Inc | Syneron Medical Limited | Healthcare | Medical Appliances & Equipment |

Other Posts by | RSS Feed for this author