Allergan Boosts Esthetics with Zeltiq Buy
Allergan’s spending spree shows no sign of stopping. It its latest move, the Ireland- based former US drugmaker has agreed to pay nearly $2.5 billion for Zeltiq Aesthetics, a US medical technology company focused on developing and commercializing products based on its proprietary controlled-cooling technology platform.
Zeltiq’s flagship CoolSculpting System is cleared by the US Food and Drug Administration (FDA) to affect appearance through lipolysis or the reduction of unwanted fat. The patented technology works by gently cooling targeted fat cells in the body to induce a natural, controlled elimination of fat cells without affecting surrounding tissue. The global body contouring market is worth $4 billion and growing, according to Allergan.
Brent Saunders, Allergan’s chairman and CEO, said the addition of Zeltiq’s cooling technology to its facial aesthetics, plastic surgery and regenerative medicines portfolio creates a world-class aesthetics business. He commented: “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service and help meet the needs of patients.”
The deal remains subject to approval by Zeltiq shareholders, as well as other conditions and regulatory clearances, but is expected to close in the second half of 2017. Some Zeltiq shareholders are pursuing a claim against the company, charging it sold itself sold too cheaply.
Allergan has made a string of purchases in 2016 and early 2017. These include Acelity’s breast reconstruction and soft tissue repair group LifeCell in January 2017 and Chase Pharma, Akarna Therapeutics, Tobira Therapeutics, Vitae Pharmaceuticals and Topokine Therapeutics, all during 2016.
