April 3 Cosmetics products maker Obagi Medical
Products Inc agreed to a revised $24-per-share buyout
offer from Valeant Pharmaceuticals International Inc
after Valeant raised its offer to top a rival bid from
German drugmaker Merz Pharma Group.
Obagi shares were up 9 percent at $25.03 in early trading as
investors geared up for a takeover fight over a company that
makes specialised skin care products to fight signs of aging,
sun damage and acne.
Obagi's products are sold only through prescription and are
considered to be more potent than commercially available
over-the-counter cosmetics, enabling the manufacturer to command
a premium pricing.
Specialized cosmetic treatments for aesthetic reasons had
taken a hit during the recession, but as the economy stabilzes,
physicians offering these services are seeing patients return.
Obagi and Canada's Valeant agreed to a deal last month in
which Valeant offered $19.75 per share. However, Merz Pharma
topped that with an offer of $22 per share on Tuesday.
Valeant said its latest offer, which values Obagi at about
$418 million, has been approved by Obagi's board.