Allergan PLC said it would buy Zeltiq Aesthetics Inc., the maker of a fat-reducing treatment CoolSculpting for $2.26 billion.
Allergan is paying $56.50 a share, a 14% premium to the company’s Friday closing price of $49.40. Zeltiq’s CoolSculpting system is U.S. Food and Drug Administration approved to freezes fat cells, causing them to self-destruct over several months. The treatment, currently done at Med Spas dermatologists and other doctors’ offices, is approved to reduce fat at the love handles, abdomen, thighs and below the chin.Allergan says the deal will add to earnings and is expected to close in the second half of the year.
Last year, Allergan and Pfizer Inc. terminated a planned $150 billion merger after the Obama administration took aim at the deal. Allergan completed the sale of its generics business to Teva Pharmaceutical Industries Ltd.
Allergan said in November that it would return more cash to shareholders because the drug maker isn’t interested in a making a megadeal. in accord with A. Hufford article.
CoolSculpting works by cooling targeted fat cells to naturally induce their elimination, without affecting surrounding tissue. Allergan, which estimates body contouring is a $4 billion market opportunity, already markets Kybella, which is used to destroy fat under the chin, leaving surrounding tissue largely unaffected. Other injectables, such as Botox and other dermal fillers are typically used to smoothen areas of the face. Zeltiq’s shares were halted premarket on Monday (Router).
COOLSCULPTING – A popular fat freezing technique is giving patients an alternative option to liposuction and is growing in popularity. Vogue reports that CoolSculpting, also known as cryolipolysis, is the latest trend among people who want to melt away their fat with minimal effort. Now, new research supports the use of CoolSculpting to permanently remove unwanted fat.
A recent review of clinical data shows that CoolSculpting can help with body contouring and has become one of the most common cosmetic procedures. This noninvasive treatment relies on cooling technology to target pockets of fat. Unlike liposuction, you do not need anesthesia or a long hospital stay. The entire procedure can usually be performed in one to three hours, but follow-up visits are encouraged.
CoolSculpting is becoming more popular because it gives you the ability to return to work the same day as the treatment. Your doctor can create an individual plan to target problem areas and focus on forming a natural, contoured shape. The procedure relies on special applicators that look like paddles and have cooling panels. The applicators are applied to your body while you read or watch television in a medical office. Your fat cells are cooled and crystallized during the treatment, so your body can naturally eliminate them. With DualSculpting one can have two areas of the body treated at the same time reducing the treatment time to half hour.
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