The privately held German pharmaceutical company, Merz, has been growing at a fast pace. It makes products for neurosciences, dermatology and aesthetics markets. It has recently announced purchase of the energy based medical devices maker, Ulthera, for $600 million. The money will be paid in upfront cash as well as milestone payments.
Ulthera is privately held and is based in Arizona. It makes medical devices for the skincare market. Its main product is the Ulthera System, energy based medical device for the aesthetics market. This system helps in performing procedures for lifting skin under the chin, brow and neck. The company has received venture capital funding from Apposite Capital and New Enterprise Associates. Ulthera was started in the year 2004 and is expecting sales of approximately $100 million USD in the year 2014.
The major products of Merz, which has its American headquarters in High Point, are dermal fillers Belotero and Radiesse. Merz also makes Xeomin which is emerging as a major competitor to the market leader, Botox.
The CEO of Merz Pharma Group, Philip Burchard, said, “This acquisition represents an important strategic milestone for Merz”. The CEO, outlining the vision of the company, also said that Merz wants to be the most innovative company in aesthetics. They are looking at long term success and the acquisition of Ulthera allows them to expand in to the rapidly growing field of energy devices. The technology of Ulthera complements their presence in the aesthetics market and it will also help in expanding their international presence.
Commenting on the technology of Ulthera, the Noth America CEO of Merz, Bill Humphries, mentioned that the innovative technology of Ulthera is unique and is not available to anyone else in this space. This technology from Ulthera combined with their in house clinical expertise will help them in developing new medical and aesthetic applications for the global market.
The sale of Ulthera to Merz has already been approved by the boards of both the companies and they hope to close the sale by the third quarter.