Date: Dec 01, 1997 Source: PR Newswire (
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PHOENIX, Dec. 1 /PRNewswire/ -- Medicis Pharmaceutical Corporation (Nasdaq: MDRX) announced today it will acquire 100% of the privately-held common stock of GenDerm Corporation of Lincolnshire, Illinois for up to $60 million, subject to certain adjustments. The transaction is subject to final due diligence and certain other conditions. Medicis anticipates the combined company will begin integrated operations by December 5, 1997.
Under terms of the agreement, Medicis will pay initially $60 million in cash, and an additional sum not to exceed $20 million if significant additional sales thresholds are achieved during calendar 1999. Medicis is expected to pay approximately 2.4 times GenDerm's annual sales and will assume an insignificant amount of debt. At September 30, 1997, GenDerm had working capital of approximately $9.4 million.
Genderm's principal products include the over-the-counter brands Zostrix(R), a leading topical analgesic, Occlusal(R), a topical wart remedy, SalAc(R) acne wash and Pentrax(R) anti-dandruff coal tar shampoos, as well as the prescription brands Novacet(R), a topical rosacea and acne treatment, and
Zonalon(R), an anti-itch medication.
"This acquisition gives Medicis access to additional treatment categories within dermatology, such as rosacea, pruritis, warts and topical analgesics, and provides important diversification for the Company by broadening its over- the-counter product line and distribution relationships," said Jonah Shacknai, Chairman and Chief Executive Officer of Medicis. "We also believe, given the strong gross profit margins and cash flow of the acquired brands, this acquisition will be accretive to earnings."
Medicis is the leading independent dermatology company in the United States, offering prescription and non-prescription treatments exclusively for skin conditions. Current products include prescription brands DYNACIN(R), TRIAZ(R), LIDEX(R), SYNALAR(R), THERAMYCIN(TM)Z and BENZASHAVE(R); over-the- counter brands ESOTERICA(R) and THERAPLEX(R); and dermatologist-dispensed brands AFIRM(TM) and BETA-LIFTx(TM) marketed through its TxSYSTEMS(TM) cosmetic dermatology business unit.
Except for historical information, this news release contains certain forward-looking statements that involve risk and uncertainties which may cause actual results to differ materially from the statements made, including the success and timing of Federal Trade Commission approval of the propose acquisition and other risks listed from time to time in the Company's SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Medicis disclaims any intent obligation to update these forward-looking statements.
SOURCE Medicis Pharmaceutical Corporation
