The US Medical Aesthetics segment
Allergan (AGN) is a global leader in aesthetics products. The company’s US medical aesthetics segment includes facial aesthetics, medical dermatology products, and a wide range of silicone gel and saline breast implants. The company’s total revenues from US medical aesthetics were $449.7 million during 1Q16. The increased contribution isn’t comparable on a year-over-year basis.
Performance of the US medical aesthetics segment
The performances of the US medical aesthetics segments during 1Q16 are as follows:
- The facial aesthetics segment reported revenues of $279.4 million during 1Q16. The total facial rejuvenation portfolio includes Botox, an injectible to reduce glabellar lines temporarily, Juvederm dermal filler gel products, Vivite, Prevage MD, and MD Forte products.
- The medical dermatology segment reported revenues of $122.2 million during 1Q16. This franchise has advanced dermatology products to treat skin diseases and also improve skin appearance.
- The plastic surgery products segment reported revenues of $48.1 million during 1Q16. These products include Natrelle brand of products for breast augmentation including silicone-filled implants, saline-filled implants, and breast reconstruction products.
Botox cosmetics revenues rose by 12%, and the filler revenues rose by 14% during 1Q16. Gross margins for the US medical aesthetics fell by 1.3% to 93.1% during 1Q16.
Investors can consider ETFs like the Fidelity MSCI Healthcare ETF (FHLC), which holds ~2.3% of its total assets in Allergan, or the iShares US Healthcare ETF (IYH), which holds ~4.2% of its total assets in Allergan, in order to divest the risk. Apart from Allergan, IYH also holds 4.2% of its total assets in Amgen (AMGN), 5.2% in Merck & Co. (MRK), and 4.0% in Bristol-Myers Squibb (BMY).