Johnson & Johnson is buying Mentor Corp., a Santa Barbara, CA-based aesthetics specialist best known for its MemoryGel silicone gel breast implants, for $1.07 billion.
The company will continue to operate as a stand-alone unit reporting through J&J surgical products unit Ethicon. Mentor president and CEO Josh Levine said in a statement that the deal “allows Mentor to expand our product portfolio and significantly grow our global reach.”
Last month, Mentor forecast total 2009 fiscal year sales of $355 million to $370 million while reporting total net sales of $84.5 million for the second quarter of its 2009 fiscal year—a 1% drop for the quarter, year-on-year, attributed to a decline in domestic breast implant sales. The drop in implant sales was offset by growth in international sales and sales of its reconstruction products, including tissue expanders sold worldwide and NeoForm dermis tissue in the US. Selling, general and administrative expenses totaled $38 million for the quarter.
The company anticipates approval of its Prevelle Shape dermal filler in the fourth quarter of fiscal year 2009 and is pursuing indications for botulinum toxin type A in the treatment of frown lines and cervical dystonia/spasmodic torticollis. In addition, Mentor completed patient enrollment for a 42,900-patient post-approval study on its MemoryGel breast implants, as required by a post-marketing agreement.
In November 2006, FDA approved silicone gel implants made by Mentor and Allergan for use in women undergoing breast reconstruction or, for those at least 22 years old, breast augmentation. The approval reversed a 14-year ban on silicone implants but imposed stringent requirements for post-marketing studies.