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Soliton Stock Rallies After $22.60/Share Buyout From AbbVie

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.

05/10/2021 10:27
  • 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.
  • AbbVie’s Allergan Aesthetics unit will pay $550 million in cash to scoop up Soliton Inc (NASDAQ: SOLY) and Resonic, its sound-wave device that improves the appearance of cellulite.
  • 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.