By Michael Erman and Natalie Grover
Botox maker Allergan Plc
Insurers do not cover Zeltiq's CoolSculpting System, meaning the bulk of the company's more than $350 million in 2016 sales was paid directly by consumers. Allergan said it has been targeting so-called "cash-pay" businesses, which is a model it uses for some of its Botox sales and other aesthetic offerings.CoolSculpting is approved by the U.S. Food and Drug Administration. Dublin-based Allergan, led by its Chief Executive Brent Saunders, has struck a number of deals since its $160 billion merger with Pfizer Inc (PFE.N) collapsed in April. Those have included its $2.9 billion purchase of regenerative medecine business LifeCell Corp and the $1.5 billion acquisition of biotech company Vitae Pharmaceuticals.
Earlier this month, Saunders set lofty expectations for its injection Kybella - used to diminish fat under the chin, leaving surrounding tissue largely unaffected - for 2017, and expressed an interest in continued deal making.In the three months ended Dec. 31, total medical aesthetic product sales accounted for 28 percent of Allergan's net revenue.
Allergan, which estimates that body contouring is a $4 billion market, said the transaction is expected to close in the second half of 2017.Shares of Allergan rose $1.27, or 0.5 percent, to $247.63 in midday trading on the New York Stock Exchange.Moelis & Co is Allergan's financial adviser, while Debevoise & Plimpton LLP serve as legal counsel. Guggenheim Securities is Zeltiq's financial adviser, while Cooley LLP will provide legal advice. (Reporting by Michael Erman in New York and Natalie Grover in Bengaluru; Editing by Shounak Dasgupta, Martina D'Couto and Frances Kerry)
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Updated Date: Feb 14, 2017 00:45:06 IST