Sirona Biochem Corp V.SBM

RE:3 Companies Revolutionizing the Cosmetics Industry

[Dachs1]

In this article, let's discuss Allergan (NYSE: AGN) , Valeant Pharmaceuticals (NYSE: VRX) , and Zeltiq Aesthetics (NASDAQ: ZLTQ) -- three companies which are revolutionizing the cosmetic procedure industry.

The inorganically growing giant: Valeant

Meanwhile, diversified medical giant Valeant has made it clear that it is targeting Allergan's core competencies.

Last December, Valeant acquired Medicis Pharmaceutical for $2.6 billion to add Dysport, a Botox competitor, to its portfolio. In August, Valeant acquired eye care giant Bausch & Lomb for $8.7 billion to compete against Allergan's eye care division.

Valeant then agreed to acquire Solta Medical (NASDAQ: SLTM) for $250 million on December 16, paying a 40% premium to add Solta's ultrasound fat reduction system Liposonix and two laser skin treatments -- Fraxel and Clear + Brilliant -- to its portfolio.

Source: Company website.

LipoSonix is a particularly interesting product, since it uses high intensity ultrasound waves to permanently eliminate fat cells and reduce waist size, representing a drastic improvement over traditional liposuction.

The disrupted fat cells are then eliminated by the body's own immune response. This kind of non-invasive fat reduction therapy can reduce a patient's waist size by 1.5 to 2 inches after an 8 to 12 week period following the initial one hour treatment.

Despite its promising technology, Solta's revenue fell 4% year-over-year to $33.5 million last quarter, which the company attributed to market pressures and lower overseas pricing.

Although adding $33.5 million in quarterly revenues doesn't matter very much to Valeant, which reported $1.54 billion in the third quarter, Valeant has the marketing muscle to help quickly spread Solta's products to new markets over the next few years

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