UPDATED Bioform Medical Inc today announced that it has acquired substantially all of the assets of privately-held Advanced Cosmetic Intervention, Inc. (ACI) and associated technology rights for $12 million cash, plus future royalties, and a potential sales-related milestone. The latter is BioForm Medical's stated desire to wed ACI's technology with its Radiesse dermal filler. ACI is the maker of GFX, a "no-tox" device that uses RF energy instead of botulium toxin to treat wrinkles.
This acqusition is a big deal in our industry. It gives a major provider in aesthetic medicine a commercially-available technology for local nerve ablation.
The move can be seen as one more case of a vendor consolidating its position in what I call the 'no-tox wars' — a few big companies have gradually been acquiring smaller firms that offer cutting-edge technology, in the form of new devices or Botox alternatives. For example, Allergan grabbed Juvederm, Mentor acquired Inamed, etc. The BioForm/ACI deal is in the same league.
From PRNewswire via Cosmetic Image Marketing's Catherine Maley:
In the acquisition of ACI, Bioform Medical will hire several of ACI's employees, and retain others as consultants to maintain continuity of this program and to accelerate future product development and commercialization activities. In addition to the up-front consideration, bioform Medical will pay a single-digit royalty to ACI. The Company anticipates that significant positive revenue impact of this acquisition is not likely until it obtains clearance for the product for aesthetic applications, anticipated to occur in calendar year 2009.
Read the whole story [removed]here[/removed].
Also today, BioForm Medical announced its financial results for the quarter ended December 31, 2007, which is the Company's second quarter of fiscal year 2008. Net sales were $18.6 million for the quarter ended December 31, 2007 as compared to $11.8 million for the quarter ended December 31, 2006, an increase of $6.8 million or 57.3%. The net loss was $1.6 million for the quarter ended December 31, 2007 as compared to $2.7 million for the quarter ended December 31, 2006. Net sales for the six months ended December 31, 2007 were $33.8 million, as compared to $19.6 million for the six months ended December 31, 2006. The net loss was $5.0 million for the six months ended December 31, 2007 as compared to $5.1 million for the six months ended December 31, 2006.
In a conference call with investors, BioForm Medical CEO Steve Basta remarked that the firm's salesforce and customers have recently been reporting a widespread downturn in business among practices using the company's products. This he blamed on Americans spending less discretionary income on aesthetic procedures, and the current economy in general. However, he pointed out that consumer interest in his firm's products within aesthetic practices has grown.