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On Tuesday Cynosure Inc. for $1.65 billion on Tuesday for fat- and hair-removal devices and other aesthetic dermatology products. “Body contouring in our view is where facial injectables were 10 years ago,” said Allergan Chief Commercial Officer Bill Meury, comparing CoolSculpting to Allergan’s popular Botox injections. “It has excellent future growth prospects.” Allergan estimated in a 2015 presentation that the market for medical aesthetics, including laser hair removal, fillers and body sculpting, would grow to $10.5 billion by 2020, up 36 percent from 2017. In a statement Monday, Allergan said body contouring alone is a market opportunity of about $4 billion a year. At a time when politicians all the way up to President Donald Trump are cracking down on medicine pricing, aesthetic medicine has a further attraction: Most patients pay in cash when the procedure is not deemed medically necessary, avoiding the insurance payment system. That provides weight loss diversification for companies like Hologic and Allergan. “It takes away the attention from the noise around regulation,” said Evercore ISI analyst Vijay Kumar. “You just let the market decide how good a product is.” The CoolSculpting procedure was cleared by the Food and Drug Administration in 2010. Applicators placed on the skin use vacuum pressure to cool the underlying fat tissue, triggering cell death.

For the original version including any supplementary images or video, visit https://www.bloomberg.com/news/articles/2017-02-15/dealmaking-health-companies-see-fat-freezing-as-the-new-botox

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