Germany's Merz Pharmaceuticals to acquire BioForm Medical for $253 million

Merz Pharmaceuticals, a privately-held producer of pharmaceuticals and beauty products, has agreed to acquire medical aesthetics company BioForm Medical Inc for $253 million.

Merz, based in Frankurt, Germany, will pay $5.45 per BioForm share, a premium of 60 per cent to the company's closing price on Thursday.

Merz manufactures and sells innovative drugs in the areas of neurology and psychiatry, dermatology and metabolism. It is a leader in treating Alzheimer's, Parkinson's and depression, and has made rapid advances in anti-ageing skin care.

Merz's flagship molecule is Memantine, an active ingredient used to treat moderate-to-severe Alzheimer's dementia symptoms. Memantine is sold under Merz's own brand name Azura, and is licensed to Forest Laboratories and Lundbeck.

In the fiscal year 2008-09, Merz had revenue of €589.8 million ($828.7 million) and 40 per cent of this was generated from outside of Germany.

San Mateo, California-based BioForm Medical is a medical aesthetics company, which develops products that enhance aesthetic procedures performed in dermatology and plastic surgery practices.