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Inamed and Medicis Change the Face of the Aesthetic Market

The $2.8 billion merger of Medicis Pharmaceutical Corp. a specialty pharma focusing on dermatology with sales of $303 million, and Inamed Corp., a cosmetic surgery company with sales of $384 million creates the largest plure-play aesthetics company focusing on physician markets, and a base for future consolidation in a fragmented and rapidly growing market.

There's no question that in the US, the market for cosmetic procedures is booming. Prime-time reality TV shows like ABC's "Extreme Makeover" and FOX's "The Swan" seem to suggest that plastic surgery is becoming almost as mainstream as cold cream as a means of beautification, and indeed, that trend is backed up by statistics from the American Society for Aesthetic Plastic Surgery (ASAPS). According to the ASAPS, there were 11.9 million cosmetic procedures in 2004, a 44% increase over 2003, with Botox injections heading the list of procedures, and liposuction the most often performed surgery.

The $2.8 billion merger of Medicis Pharmaceutical Corp. a specialty pharma focusing on dermatology with sales of $303 million, and Inamed Corp. , a cosmetic surgery company with...

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