Although this news isn’t as exciting to the general public as, say, Bruce Jenner’s latest bizarre change in appearance, it’s huge news in the plastic surgery and dermatology market. Allergan, pioneers of some of the most game-changing and innovative products in cosmetic medicine, are the target of a possible hostile takeover bid by rival Valeant. Allergan are the makers of Botox, Juvederm, Latisse, Natrelle breast implants, and their latest, Voluma. Their products are the best in the biz. So why are they in trouble?
Valeant is a company that has very quickly acquired a massive portfolio of plastic surgery products, some of which they have recently sold. At one time or another, they’ve acquired Obagi, Restylane, Perlane, Dysport, and Sculptra. Allergan is now in their sights.
So why are some plastic surgeons (like myself) worried? The concern is research and development (R&D). Allergan has been at the forefront of R&D for cosmetic products, as evidenced by their game-changers like Voluma and Latisse. They spend a lot of money researching new plastic surgery technology. This is good for both doctors and patients.
So the big question is: If Valeant takes over Allergan, will they continue Allergan’s tradition of aggressive R&D? Valeant says they will, but some physicians aren’t so sure.
One thing is for sure: the Allergan stockholders (and former stockholders) have benefitted. The stock has gone through the roof since Valeant announced its takeover bid. This is an interesting back-and-forth story. I hope it has a happy ending.
