Pharma BD Deal Intelligence

Allergan plc / Zeltiq Aesthetics, Inc.

2017 · Acquisition/Merger · $2.5B · Complete

WRONG BY 56 POINTS

CoolSculpting fit Allergan's (then AbbVie's) aesthetics strategy but the ~$2.5B asset needed a ~$1.0B write-down within six years of the deal, undercut by early revenue erosion, a high-profile disfigurement lawsuit, and a self-inflicted marketing misstep — a franchise that never earned its purchase price back.

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The coverage arc

Feb 13, 2017 BioPharma Dive Bullish

BioPharma Dive noted the deal would be 'immediately accretive,' citing Zeltiq's $354M FY2016 sales and 17-20% projected 2017 growth. Cited MarketsAndMarkets…

Feb 13, 2017 Fortune Neutral

Fortune highlighted the 14.4% premium to prior close and contextualized the deal as part of CEO Brent Saunders's acquisitive playbook following the failed…

Feb 14, 2017 BioWorld MedTech Bullish

BioWorld characterized the deal as portfolio reshaping that adds the FDA-cleared CoolSculpting franchise as the third pillar of Allergan's medical aesthetics…

Source summaries from our enrichment pipeline; follow links for originals.

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Allergan agreed to acquire Zeltiq Aesthetics for $56.50/share in cash, total enterprise value approximately $2.47B. The deal added the FDA-cleared CoolSculpting System to Allergan's medical aesthetics platform as a third pillar alongside facial aesthetics and breast/regenerative medicine. Closed April 28, 2017.

Did it work? Outcome assessment

CoolSculpting fit Allergan's (then AbbVie's) aesthetics strategy but the ~$2.5B asset needed a ~$1.0B write-down within six years of the deal, undercut by early revenue erosion, a high-profile disfigurement lawsuit, and a self-inflicted marketing misstep — a franchise that never earned its purchase price back.

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Assets Advanced

Key facts

Related deals — scored

DealYearValueOutcome
Allergan plc / Zeltiq Aesthetics, Inc. (this deal)2017$2.5B32
Allergan plc / Merck & Co., Inc. (CGRP receptor antagonist program)2015$250M91
Allergan plc / SkinMedica, Inc.2012$375M55
Allergan plc / Inamed Corporation2005$3.2B50
Allergan plc / Oculeve, Inc.2015$250M33
Allergan plc / Kythera Biopharmaceuticals, Inc.2015$2.1B23
Allergan plc / Anterios, Inc.2016$90M19

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