Equity Briefing: Medicis would benefit from Accretive Transaction
(Thomson Reuters ONE) -
Shares of Obagi Medical Products (NASDAQ:OMPI) rose 4.69% on Monday to $12.95
+0.58 and traded as high as $13.15 after being mentioned as a possible
acquisition candidate for the second time in as many weeks.
In a note to institutional clients about Medicis (NYSE:MRX), Cantor Fitzgerald
analyst Irina Rivkind wrote that an asset replacement has gotten more critical
for the company given that Medicis is facing asset attrition from Hyperion,
Vanos,and MaxAir in the 2013-2014 time frame.
Cantor Fitzgerald feels that cash from Medicis' recently announced $450 million
financing "will be used to support M&A rather than share buy-backs."
"We have previously written that Medicis may opt to license privately-held
Revance's topical toxin, and estimated a U.S. license for ~$250M with +$2-3
upside to the stock," wrote Rivkind. " We think the timing of the Revance
negotiation could occur in the next six months, but we lack strong conviction
around this event and don't think it would be immediately accretive. There are
other aesthetic companies in the space which are already profitable, such as
Obagi and privately-held SkinMedica, that we believe could be immediately
accretive and also attainable for the company. Furthermore, we think that
Medicis may find Obagi's internet pharmacy initiative strategically interesting
to further innovate its "alternative fulfillment" program and generate
additional revenue in its acne franchise."
Obagi, a leader in topical aesthetic and therapeutic skin health systems,
reported recently that net sales for the first quarter ended March 31, 2012 rose
16% to a record $30.8 million from $26.5 million a year ago. The firm has been
the subject of various M&A rumors during recent weeks.
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Source: Equity Briefing via Thomson Reuters ONE
[HUG#1612286]
Datum: 15.05.2012 - 13:01 Uhr
Sprache: Deutsch
News-ID 146700
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