L'Oreal BioMedic Purchase To Expand Skin Care Sales Through MDs
This article was originally published in The Rose Sheet
Executive Summary
The acquisition of Phoenix, Ariz.-based BioMedic by L'Oreal USA will increase the cosmetic giant's currently limited U.S. presence in direct-to-physician skin care product sales as well as continue to build the company's global portfolio of "dermocosmetics," L'Oreal said. Announced May 9, the transaction is expected to close in the next two months.
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The acquisition of Phoenix, Ariz.-based BioMedic by L'Oreal USA will increase the cosmetic giant's currently limited U.S. presence in direct-to-physician skin care product sales as well as continue to build the company's global portfolio of "dermocosmetics," L'Oreal said. Announced May 9, the transaction is expected to close in the next two months. The BioMedic business includes more than 60 non-prescription skin care and clinical procedure products, which are sold to patients by more than 1,500 physicians in the U.S. The company had sales of $13 mil. in 2000, with North America accounting for more than 80% of total revenues. The price of the acquisition was not disclosed. Approximately 95% of BioMedic's customers are plastic surgeons, while dermatologists make up the remainder. The 10-year-old company claims to be a leader in the sale of skin care products to plastic surgeons. Among BioMedic's top-selling products are an AHA-based purifying cleanser and an in-office micro-peel procedure involving physical and chemical exfoliation products. The majority of BioMedic's sales are generated by at-home skin care items, the firm said. Over the past five years, the company's sales have increased an average of 15% annually, according to BioMedic. BioMedic will join L'Oreal's La Roche-Posay business marketed to physicians. La Roche-Posay Active C was introduced in the U.S. within the past two years and is available stateside on a relatively limited basis, primarily through dermatologists. The primary geographic focus of the La Roche-Posay skin care business has been in Western Europe, although the company recently expanded to Latin America. Like La Roche-Posay, BioMedic will become part of L'Oreal's Active Cosmetics Division, operating under the leadership of L'Oreal USA Luxury Products Division President Philip Shearer. BioMedic founders Cristina Carlino and David Watson will continue to be affiliated with the business as consultants. Carlino and Watson also are principals in the growing Philosophy skin care and cosmetics business, which is not involved in the L'Oreal transaction (1 (Also see "Philosophy" - HBW Insight, 14 May, 2001.)). |