Mentor Plots Cosmetic Change
One question posed during a telephone conference Monday was whether Mentor might make a hostile run at Medicis. Mentor CEO Levine declined to comment, saying only that his company "will wait for the dust to settle" before making the next step. The offer to Medicis was the only way to get that company's attention because of its dealing with Inamed, Levine said.
Medicis shareholders are scheduled to vote on the Inamed deal on Dec. 19. The transaction is under review by the Federal Trade Commission.
Mentor's future appeal to investors will depend on how fast it gets U.S. approval for silicone breast implants for cosmetic uses, what price it gets for the urology businesses and how it can expand its presence in the skin-treatment market. Buying Medicis would easily answer the skin-care question.
Inamed and Mentor are dueling to be first on the U.S. market with silicone gel breast implants for cosmetic purposes. Both have received conditional approval from the Food and Drug Administration for their products, but they haven't said what they must do to secure final approval.In the past, analysts speculated that the company getting to the market first would have an advantage, but now many believe the FDA will grant final approval at essentially the same time. Mentor says a merger with Medicis will enable their combined sales forces to increase product offerings to cosmetic surgeons and dermatology specialists. Because so-called aesthetics medicine is a "significant growth opportunity," Mentor said last month that it was evaluating alternatives for its urology business, meaning that if the price is right, it will sell. Mentor's urology businesses, including urinary catheters, erectile dysfunction products and prostate cancer products, yielded $116.7 million in sales for the six months ended Sept. 30. Aesthetics products, mainly breast implants, but also skin and body products, delivered $132.8 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV