Soliton Stock Rallies After $22.60/Share Buyout From AbbVie
Author: Vandana Singh | May 10, 2021 10:27am
AbbVie Inc (NYSE: ABBV) is making an opportunistic play to boost the aesthetics business by adding a long-delayed body sculpting product into the fold.
Under the terms of the transaction, Allergan Aesthetics will pay $22.60 per share in cash for each outstanding share of Soliton.
The body sculpting offering will help add some heft to the Allergan Aesthetics brand, which includes cosmetic Botox as its most visible product.
AbbVie propped up the aesthetics business as part of its $63 billion buyout of Allergan last year, keeping Botox’s therapeutic indications under the AbbVie brand.
Allergan Aesthetics already has a product in CoolSculpting Elite. Still, the Soliton pickup adds a non-invasive option in Resonic, which also holds approval in tattoo removal alongside lasers and improves the appearance of fibrotic scars.
Cosmetic Botox cleared $447 million in the first quarter, a 44.7% Y/Y increase. The unit, on the whole, made $1.14 billion in sales on the quarter. Meanwhile, the overall AbbVie business cleared more than $13 billion in sales on the quarter, led once again by Humira at $3.9 billion.
Price Action: SOLY shares are up 23.7% at $22.27, while ABBV shares are up 0.31% at $116.12 during the market trading session on the last check Monday.