Medicis Pharmaceutical

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Medicis Pharmaceutical
Subsidiary
Industry Pharmaceuticals
Fate Acquired (December, 2012)
Founded 1988
Founder Jonah Shacknai
Headquarters Bridgewater, New Jersey, USA
Parent Valeant Pharmaceuticals
Website medicis.com

Medicis Pharmaceutical was a medical cosmetics company founded in 1988 with headquarters in Scottsdale, Arizona.[1] It was acquired by Valeant Pharmaceuticals in 2012 and in 2013, the company moved its headquarters to Bridgewater, New Jersey.[2] Among their products are Solodyn and Ziana for treating acne, and Restylane and Dysport for treating facial wrinkles.[3]

History[edit]

Medicis was founded in 1988[1] by Jonah Shacknai[4] and John Holaday.[5] The company held its IPO in 1990, and launched its first products over the next year.[1]

In December 1997, Medicis acquired GenDerm Corporation, a dermatology pharmaceuticals company, for $60M in cash.[6] Medicis also acquired Ucyclyd Pharma, a Baltimore-based private company, for $23.4 million in cash in April 1999. Ucyclyd's main product was Buphenyl (sodium phenylbutyrate), used for treating urea cycle disorders.[7] In 2005, they rejected a $2.2 billion unsolicited takeover proposal by Mentor.[8]

In September 2011, the company sold its rights to the LipoSonix system to Solta Medical, for $35 million. LipoSonix is an ultrasound device intended to help destroy fat deposits in the vicinity of the stomach, referred to as "belly fat".[9]

Shacknai came to media attention in 2011 due to the deaths of his son, Max Shacknai, and subsequent suicide of his girlfriend, Rebecca Zahau.[10]

In 2011 Medicis had $721 million in revenue and had a gross profit margin of roughly 90.7 percent.[3]

In September 2012 Canadian based Valeant Pharmaceuticals and Medicis' management agreed that Valeant would acquire Medicis for 2.6 billion dollars, or $44/share, 39 percent more than the stock’s Aug. 31 closing price. The deal was subject to shareholder and regulatory approvals.[11] It was the 11th acquisition for Valeant that year and was expected to close the next summer.[12] The transaction was completed in December 2012, with Medicis delisting and becoming a subsidiary of Valeant, and the board of directors disbanded.[4] Later in December Valeant dismissed 319 of Medicis' employees and retained 117.[13] Shaknai left the company at the acquisition and Medicis’ executive vice president and COO, became the executive vice president and company group chairman of Valeant to run the subsidiary.[4]

References[edit]

  1. ^ a b c Medicis 2011 Annual Report
  2. ^ Alltucker, Ken (30 July 2013). "Medicis headquarters moving to New Jersey". AZ Central. Retrieved 26 November 2015. 
  3. ^ a b Kelsey Kaustinen (2012-09-05). "Valeant nabs Medicis for $2.6 billion". Drug Discovery News. Retrieved 2012-10-14. 
  4. ^ a b c Angela Gonzales for the Phoenix Business Journal. Dec 11, 2012 Valeant, Medicis complete merger with Shacknai out
  5. ^ Staff. People Nature Biotechnology 24, 366 (2006) doi:10.1038/nbt0306-366
  6. ^ Staff, The Pharma Letter. Dec 10, 1997 Medicis Completes GenDerm Acquisition
  7. ^ "Medicis Pharmaceutical Corporation Announces Acquisition of Ucyclyd Pharma Inc.", Gale HealthWire, 1999-04-19, retrieved 2011-09-17 
  8. ^ Feder, Barnaby J. (2005-11-22). "Mentor Leaves Options Open on Its Bid for Medicis". The New York Times. Retrieved 2011-09-09. 
  9. ^ "Medicis agrees to sell LipoSonix system to Solta", Business Week, 2011-09-13, archived from the original on November 2, 2012 
  10. ^ Loftus, Peter (2011-09-02), "Health industry: Death Of Medicis CEO's Girlfriend Ruled a Suicide", The Wall Street Journal, retrieved 2011-09-09 
  11. ^ Bloomberg News via The New York Times. Sept 3, 2012. Valeant to Buy Medicis, Maker of Dermatology Drugs
  12. ^ Mark Scott for The New York Times. Sept 4, 2012. Valeant Sticks to Torrid Pace of Deal-Making
  13. ^ Angela Gonzales for the Phoenix Business Journal. Dec 18, 2012 How many Medicis employees lost their jobs in Valeant buy? A lot