Merz Pharma Group Acquires Swiss Dermatology Company Neocutis S.A.

GREENSBORO, N.C. & FRANKFURT, Germany–(BUSINESS WIRE)–

Merz Pharma Group (Frankfurt am Main) today announced that it has
entered into a definitive agreement with Swiss dermatology company
Neocutis S.A. to acquire the privately held company’s cosmetics, OTC,
and Rx skin care business. The acquisition of Neocutis strengthens
Merz’s market position in the field of aesthetics and reflects the
Company’s strategy to establish itself as a global leader in medical and
aesthetic dermatology.

“Neocutis is an innovative company with an excellent presence in the
U.S. market, and a promising potential for development,” said Philip
Burchard, CEO of Merz Pharma Group. “This transaction is an important
step to expand our U.S. business, as Neocutis products are an excellent
addition to our own aesthetics portfolio.”

The acquisition, which closed on July 22, 2013, will be managed in North
America by Merz Pharma Group’s U.S. affiliate, Merz North America, Inc.,
which will also integrate marketing of Neocutis’ line of
physician-dispensed topical skin care products in the U.S.

“The acquisition of Neocutis significantly strengthens Merz’s presence
in the U.S. aesthetics market,” said Bill Humphries, President and CEO
of Merz North America, Inc. “Neocutis’ line of topical skin care
products complements our current portfolio of aesthetic injectable
products and expands our ability to provide patients and physicians with
innovative, high-quality aesthetic products along the full continuum of
care. We are excited to welcome the Neocutis team to the Merz family; we
look forward to learning from them and seeing their contributions to our
continued growth in North America. We are proud to contribute to Merz’s
global leadership in aesthetic and medical dermatology, and we remain
committed to growing the U.S. business via both organic growth and
additional licensing and acquisition opportunities.”

In the U.S., Merz Pharma Group’s affiliate Merz North America is an
important contributor to the aesthetics space, offering a well-balanced
range of products for minimally invasive treatments, including the
dermal fillers Radiesse® Volumizing Filler and Belotero Balance®, the
neurotoxin Xeomin® (incobotulinumtoxinA), the Mederma® family of
products for scar care and stretch marks therapy and an injectable
product for the treatment of varicose veins.

Neocutis S.A. was founded in February 2003 as a spin-off of the medical
faculty of the Lausanne University Clinic, Switzerland. The privately
owned company is headquartered in Lausanne, Switzerland and develops and
distributes innovative cosmetic products for dermatologic conditions and
anti-aging skincare. The company entered the U.S. market in 2009 and
since that time has seen double-digit growth annually.

Following the acquisition, Merz North America plans to leverage
Neocutis’ existing preferred customer programs with the Merz Aesthetics™
product line to provide additional benefits to physicians and patients.

About Merz North America

Merz North America is a specialty healthcare company that develops and
commercializes innovative treatment solutions in medical and aesthetic
dermatology, and neurology in the U.S. and Canada. Our ambition is to
become a recognized leader in the treatment of movement disorders, and
in aesthetics and dermatology. Our future is promising, and we are
committed to advancing new therapeutic options and improving patients’
lives. For more than 100 years, the development of Merz products has
been based on our commitment to providing innovative medical approaches
that earn trust of patients, physicians and partners worldwide. For more
information about Merz or the Company’s products, please visit www.merzusa.com.

About the Merz Pharma Group

Merz’s business activities are in the research, development and
distribution of innovative pharmaceutical and medical products for
aesthetic and medical dermatology and the fields of neurology and
metabolic disorders. Memantine, the first active agent in the world with
a glutamatergeric effect for the treatment of moderate to severe
Alzheimer’s dementia, is the second most frequently prescribed
anti-dementive medication. For the treatment of neurological movement
disorders, Merz developed Xeomin® (incobotulinumtoxinA). Another core
competence of Merz is clinical and aesthetic dermatology. Merz
Aesthetics offers a well-balanced range of products for minimally
invasive treatments. With the fillers Radiesse® Volumizing Filler and
Belotero Balance® and the neurotoxin Xeomin® (incobotulinumtoxinA) the
company is an important contributor to the American aesthetic market.
With the brands tetesept® and Merz Spezial®, Merz Consumer Care is a
leading supplier of OTC medications, food supplements and skincare
products in German-speaking countries.

IMPORTANT SAFETY INFORMATION for XEOMIN®
(incobotulinumtoxinA)
INCLUDING BOXED WARNING

WARNING: DISTANT SPREAD OF TOXIN EFFECT

Postmarketing reports indicate that the effects of XEOMIN®
(incobotulinumtoxinA) for injection, for intramuscular use, and all
botulinum toxin products may spread from the area of injection to
produce symptoms consistent with botulinum toxin effects.
These
may include asthenia, generalized muscle weakness, diplopia, blurred
vision, ptosis, dysphagia, dysphonia, dysarthria, urinary incontinence
and breathing difficulties.
These symptoms have been reported
hours to weeks after injection.
Swallowing and breathing
difficulties can be life threatening and there have been reports of
death.
The risk of symptoms is probably greatest in children
treated for spasticity but symptoms can also occur in adults treated for
spasticity and other conditions, particularly in those patients who have
underlying conditions that would predispose them to these symptoms.
In
unapproved uses, including spasticity in children and adults, and in
approved indications, cases of spread of effect have been reported at
doses comparable to those used to treat cervical dystonia and at lower
doses.

Source Article from http://finance.yahoo.com/news/merz-pharma-group-acquires-swiss-120000130.html
Merz Pharma Group Acquires Swiss Dermatology Company Neocutis S.A.
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