Allergan pays $350M for skin product business

The Associated Press

Specialty drugmaker Allergan Inc., the maker Botox anti-wrinkle injections, said Friday it will pay $350 million to acquire skin care products from privately held SkinMedica in an effort to expand its product offerings.

Carlsbad, Calif.-based SkinMedica markets non-prescription face-smoothing creams like TNS Essential Serum and prescription products like Vaniqa, which removes women's unwanted facial hair. The deal includes a variety of non-prescription products sold through physicians' offices, as well as some prescription products.

Allergan, based in Irvine, Calif., will pay an additional $25 million if the company's products reach certain sales goals.

The company plans to operate SkinMedica as a separate business, and will over time combine some of its own sales force with that of SkinMedica's.

The acquisition does not include SkinMedica's make-up business, which will be spun off after the transaction closes later this year.

Allergan shares rose 61 cents $88.56 in morning trading. The stock has traded between $87.50 and $89.20 in the past 52 weeks and is basically flat for the year.