The head of Medicis Pharmaceutical ( MRX) said Friday that he's continuing his effort to acquire Inamed ( IMDC) even though Allergan ( AGN) has made a competing bid. Medicis Chairman and Chief Executive Jonah Shacknai said his company is proceeding with "all systems go" in pursuit of Inamed. He made the comments to investors at a Credit Suisse First Boston health care conference. The company has filed a formal proxy with the Securities and Exchange Commission, set a Dec. 19 date for a shareholders' vote and filed answers to antitrust-related questions posed by the Federal Trade Commission. The FTC 30-day review period expires Dec. 14. And if Inamed decides against what Shacknai calls an excellent offer, he said Medicis won't rethink its business strategy because he doesn't have "an emotional view" about the acquisition
. If Inamed walks away from the Medicis offer, "we'll be just fine," he said. Medicis, of Scottsdale, Ariz., specializes in skin-care products ranging from acne drugs to an antiwrinkle treatment. It made a cash and stock bid for Inamed in March, which was then worth $2.8 billion, or $75 a share. The deal included $30 in cash and 1.4205 Medicis shares for each share of Inamed, of Santa Barbara, Calif. Because Medicis' stock has fallen, the deal is now worth about $69 a share. Early this week, Botox-maker Allergan offered $84 a share, or $3.2 billion, for Inamed, which specializes in skin-care products, breast implants and obesity products. Allergan's offer is $84 in cash or 0.8498 shares of Allergan for each share of Inamed. The target company's board said it would review the unsolicited offer from Allergan, of Irvine, Calif., whose other main business is eye-care medications. Shackani wasn't asked whether he would try to beat Allergan's bid. He didn't volunteer any comment, except to say that the Medicis offer reflects the "full and fair value" of Inamed.
He also left no doubt that Inamed's skin-care business was the biggest attraction for Medicis. The key to the Medicis bid is the experimental skin treatment, Reloxin, which is similar to Allergan's Botox. When Allergan made its offer for Inamed, it also said it would divest its rights to Reloxin to avoid antitrust concerns. Inamed licenses Reloxin from the French company Ipsen. On Friday, when one analyst asked if Medicis would pursue Reloxin if the Medicis-Inamed deal falls through, Shacknai called Reloxin the "threshhold event" in its romance of Inamed. If Medicis wasn't convinced that Reloxin could be a star product, Medicis wouldn't have made a bid for Inamed, Shacknai said. He also made it clear that Inamed's skin-care business was more of a lure than its breast-implant business. Inamed is dueling with Mentor ( MNT) to get government approval to use
silicone breast implants for cosmetic surgery. Right now, silicone implants are restricted to a few uses, such as breast reconstruction for women who have undergone mastectomies. Mentor and Inamed sell silicone gel implants in foreign markets for cosmetic surgery. They also sell saline-filled implants in U.S. and foreign markets for cosmetic purposes.