UPDATE 2-Galderma bids $967 mln for Swedish implant firm Q-Med

* Bids 6.7 bln crowns, 75 crown per share, for Q-Med

* Price could rise to 7.5 bln if milestones met

* Q-Med board recommends acceptance

* Q-Med shares up 12.8 pct to 74.75 crowns

(Adds Q-Med comment, background, detail)

By Helena Soderpalm

STOCKHOLM, Dec 13 (BestGrowthStock) – Galderma, a joint venture
between L’Oreal (OREP.PA: ) and Nestle (NESN.VX: ), launched a bid
for Sweden’s Q-Med (QMED.ST: ) for about $970 million, creating a
bigger rival in anti-ageing treatments to Botox maker Allergan
Inc (AGN.N: ).

Cosmetic surgery is growing massively across the world with
Botox and other facial filler treatments among the most popular
procedures. [ID:nN14151304]

Buying Q-Med would give Galderma access to the Swedish
firm’s Restylane product, an alternative to Botox for smoothing
out wrinkles and making faces look plumper and younger.

Q-Med also produces a gel that is used in breast enlargement
and body contouring without the need for surgery.

Galderma, which makes products aimed at treating skin, hair
and nail diseases like acne, psoriasis and skin cancer, said the
offer was worth around 75 crowns per share.

It values Q-Med at 32.9 times earnings per share in the 12
months to end-September. That compares with a price-to-earnings
ratio of about 22 times at Allergan, and 12.2 times at U.S.
partner Medicis, according to Thomson Reuters data.

Medicis Pharmaceutical Corp (MRX.N: ) sells Restylane in North
America.

“We have called the 10 biggest owners to tell them about the
offer and have had a positive reaction,” Anders Milton, a
director and Chairman of the bid committee at Q-Med said.

Shares in Q-Med, which made a pretax profit of 756 million
Swedish crowns on revenues of 1.4 billion in 2009, were up 12.8
percent at 74.75 crowns at 1238 GMT, indicating the market
belives that the deal will go through.

FILLER

Galderma said that the deal would create long-term growth
potential and that it had no plans to change Q-Med’s strategy of
focusing on Restylane and developing more products for its
cosmetic product area.

Q-Med’s Restylane, and Allergan’s rival Juvederm, are
so-called “dermal fillers” — gels made using hyaluronic acid
that is injected into the skin to fill out wrinkles and shape
lips.

These contrast with Botox and Galderma’s Azzalure, both
derived from botulinum toxin, which counter wrinkles by inducing
muscle paralysis.

Q-Med’s board has backed the deal as has its founder and top
shareholder, Bengt Agerup. He stands to make less than the 75
crowns per share offered to other shareholders.

His company, Lyftet Holding BV, holds around 47.5 percent of
Q-Med shares and has accepted an offer of 58.94 crowns per share
in cash with possible additional compensation to a maximum
amount of 74.96 crowns per share.

Excluding Agerup, Galderma’s offer represents a premium of
18.3 percent to the volume-weighted average trading price over
the last 90 calendar days.

The total value of the offer amounts to about 6.7 billion
crowns but could rise to 7.5 billion if certain milestones are
reached.

Credit Suisse and Swedbank advised Galderma. Nordea advised
Q-Med’s board.
(Additional reporting by Quentin Webb in London; Editing by
David Holmes and Jon Loades-Carter)
($1=6.927 Swedish Crown)

UPDATE 2-Galderma bids $967 mln for Swedish implant firm Q-Med