About a year after it was outbid for skincare company Obagi by Valeant ($VRX), Germany's Merz announced June 26 another play to to boost its aesthetics niche, this time involving devices. Merz is acquiring ultrasound company Ulthera, provider of the only nonsurgical, FDA-cleared treatment for facial skin tightening, for up to $600 million in cash and milestone payments.
"We have a vision to be the most innovative company in aesthetics, and expanding into the rapidly growing field of energy devices will position us for long-term success in this area. The addition of Ulthera's energy device technology complements and expands our global presence in the aesthetics space," said Philip Burchard, CEO of Merz Pharma Group, in a statement.
Mesa, AZ-based Ulthera said its expects sales of $100 million in 2014, and has been profitable since 2012, according to the Phoenix Business Journal. The Ulthera System consists of a control unit, hand piece and a transducer that emits ultrasound technology to lift the skin on the eyebrow, neck and under the chin. The doctor views a projection of the patient's skin tissue to determine proper placement of the handpiece and transducer.
"The aesthetic lift indication differentiates Ulthera from every other energy device available in the market today," said Bill Humphries, CEO of Merz's North America division in a statement. "It is truly innovative technology, and we expect to leverage our in-house clinical expertise to develop further aesthetic and medical applications and bring them to the international marketplace."
Ulthera was founded in 2004. The ultrasound system was granted de novo approval in 2009, and the indication was expanded to include lifting of neck and chin skin in 2012, according to regulatory filings.
"We were on the path to go public and had a number of exchanges with the SEC, then we just thought this deal made more sense based on where the company is at this time and the nature of the acquiring firm," Ulthera CEO Matthew Likens told the Phoenix Business Journal. "Our top line growth through 5 months this year is 65% so far, so we're continuing to hire and add folks," he added.
Likens will remain CEO of Ulthera when the transaction closes in the third quarter of 2014. The venture into the device space will be the largest acquisition in Merz history and compliments its drugs for wrinkle control, hair loss and scar therapy. Merz also sells medications for neurological conditions like Alzheimer's and Parkinson's disease.
- read the release
- read the Phoenix Business Journal