This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Medicis Walks Away From Inamed

Medicis (MRX) on Tuesday announced the end of its nine-month courtship of Inamed (IMDC) after having been outbid by Allergan (AGN).

Medicis, a Scottsdale, Ariz., company that specializes in skin disease and skin-treatment products, said it would collect a $90 million break-up fee from Inamed according to the terms of their March 20 agreement.

"After careful evaluation by the board of directors with consultation from outside counsel and financial advisers, we have concluded that it is in the best interests of Medicis shareholders not to raise our offer for Inamed," said Jonah Shacknai, chairman and chief executive of Medicis.

The company's decision comes seven days after the Dec. 6 deadline that it had set for Inamed, of Santa Barbara, Calif., to reject the competing offer from Allergan. Inamed focuses on skin-care products and breast implants. Allergan, of Irvine, Calif., makes eye-care medications and the Botox wrinkle treatment.

Allergan offered $84 in cash or 0.8498 shares for each share of Inamed. The deal is worth about $3.2 billion. Inamed's board recently said that although Allergan's offer was superior, the board was neutral on the competing bids.

Medicis had offered $30 plus 1.4205 shares for each share of Inamed. The deal was originally worth about $2.8 billion, or $75 a share. The price of Medicis' stock has oscillated since the original bid, and based on Monday's closing price, the offer was worth $77.31 a share.

Medicis backed away from Inamed one day before the companies had been scheduled to hear from the Federal Trade Commission about potential antitrust issues. The FTC previously asked the companies for more information. Last month, Medicis said it had sent to the FTC "substantially all" of the information that the agency had requested.

On Tuesday, a Medicis spokeswoman declined to comment when asked if her company had heard from the FTC. She also declined to comment on whether Medicis had received any new communication from Mentor (MNT), which made an unsolicited, stock-swap bid of $2.2 billion for Medicis last month. The offer was rejected.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs