Pharmaceutical firm Allergan, maker of the antiwrinkle treatment Botox, has offered roughly $3.2 billion to buy cosmetic device manufacturer Inamed - a proposal that comes as Inamed already is in merger talks with dermatology products firm Medicis Pharmaceutical.
Allergan's acquisition of Inamed would create a leading franchise in "high-growth medical aesthetics," said Allergan, noting the synergies between the companies.
Inamed's aesthetic brands include dermal fillers, which are complementary to Allergan's Botox Cosmetic (botulinum toxin type A), as well as the leading breast aesthetics portfolio, Allergan said. Under the acquisition proposal, Allergan would immediately divest Inamed's license to Reloxin, a botulinum toxin type A product, in an effort to minimize any potential antitrust issues in the acquisition. The firm also noted its interest in Inamed Health's BioEnterics Lap-Band System, a minimally invasive surgical device used to treat obesity, which Allergan says is a growing market.
"This compelling proposition fits Allergan's strategy to leverage our strengths and solidify our leadership in high-growth specialty markets," said David Pyott, Allergan's chairman of the board, president and CEO.
Allergan is offering $84 in cash or 0.8498 of a share of Allergan common stock for Inamed. The total deal of $3.2 billion is roughly $450 million more than what Medicis has offered to purchase Inamed.
Medicis and Inamed announced a definitive merger agreement last spring. The combined firm would be a "global leader in breast and facial aesthetics products and therapeutic dermatological medicine," Medicis said in March. In a recent statement, Medicis said it remains confident that Inamed's shareholders will see the superior value inherent in a Medicis-Inamed combination. "We remain fully committed to the deal," Medicis said.