1. In Vivo

Thermage/Reliant: Evidence of Tightening in the Aesthetics Market

The aesthetics industry is becoming increasingly competitive and there are very few intellectual property barriers to entry; as soon as one company develops a new wrinkle-reducing device, it's not long before others come up with something that sounds similar. Sales and marketing account for the biggest costs of medical aesthetic companies, and because a number of the newer one-product companies now find themselves bumping into their competitors in physicians' offices and at trade shows, consolidation in the industry appears to be in order. In this challenging environment, the recent merger of skin tightening company Thermage with skin resurfacing firm Reliant is designed to create a stronger competitor.

The aesthetics industry is becoming increasingly competitive and there are very few intellectual property barriers to entry; as soon as one company develops a new wrinkle-reducing device, it’s not long before others come up with something that sounds similar. Sales and marketing account for the biggest costs of medical aesthetic companies, and because a number of the newer one-product companies now find themselves bumping into their competitors in physicians’ offices and at trade shows, consolidation in the industry appears to be in order.

Several weeks ago, Medicis Pharmaceutical Corp. was the harbinger of such acquisition activity, with its $150 million purchase of fat-buster Medicis Technologies Corp. (See "DotW: Easy Livin’," The...

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