Medicis Pharmaceutical

History

Medicis was founded in Scottsdale, Arizona in 1988 by Jonah Shacknai and John Holaday. The company held its IPO in 1990 and launched its first products over the following year.

1997 Acquisition of GenDerm

In December 1997, Medicis acquired dermatology pharmaceuticals company GenDerm Corporation for $60M in cash. It also acquired Ucyclyd Pharma, a Baltimore-based private company, for $23.4 million in April 1999. Ucyclyd's main product was Buphenyl (sodium phenylbutyrate), used for treating urea cycle disorders. In 2005, they rejected a $2.2 billion unsolicited takeover bid by Mentor.

2011 Sale of LipoSonix to Solta Medical

In September 2011, the company sold its rights to the LipoSonix system to Solta Medical for $35 million. LipoSonix is an ultrasound device intended to help destroy fat deposits in the vicinity of the stomach referred to as "belly fat". For the year, Medicis recorded $721 million in revenue with a gross profit margin of roughly 90 percent.

2011-2018 Media Attention

Main article: death of Rebecca Zahau

The company's founder, Jonah Shacknai, came to media attention in 2011 due to investigations into the deaths of his son Max and girlfriend Rebecca Zahau. A jury in a 2018 civil trial concluded that the death of Zahau a homicide by Jonah's brother, Adam Shacknai.

2012 buyout by Valeant

In September 2012, Canadian-based Valeant Pharmaceuticals and Medicis' management agreed that Valeant would acquire the company for $2.6 billion, or $44/share, 39 percent more than the stock’s Aug. 31 closing price. The deal was subject to shareholder and regulatory approvals. It was the 11th acquisition for Valeant that year and was expected to close the next summer. The transaction was completed in December 2012, with Medicis delisting and becoming a subsidiary of Valeant, after which its board of directors disbanded. Later in December, Valeant dismissed 319 of Medicis' employees and retained 117. Shaknai left the company at the time of the acquisition and Medicis’ executive vice president and COO Ryan Weldon became company group chairman.

2015 Arizona Consumer Fraud Lawsuit and Judicial Precedent

In 2015 Medicis was charged under the Arizona Consumer Fraud Act, and Arizona allowed consumer fraud law to apply against pharmaceutical companies for the first time. Medicis marketed an extended release form of minocycline, known to cause a lupus-like autoimmune response.

References

References

1. (30 July 2013). "Medicis headquarters moving to New Jersey". AZ Central.
2. Staff. [http://www.nature.com/nbt/journal/v24/n3/full/nbt0306-366.html People] Nature Biotechnology 24, 366 (2006) {{doi:10.1038/nbt0306-366
3. Staff, The Pharma Letter. Dec 10, 1997 [http://www.thepharmaletter.com/article/medicis-completes-genderm-acquisition Medicis Completes GenDerm Acquisition]
4. (1999-04-19). "Medicis Pharmaceutical Corporation Announces Acquisition of Ucyclyd Pharma Inc.".
5. Feder, Barnaby J.. (2005-11-22). "Mentor Leaves Options Open on Its Bid for Medicis". [[The New York Times]].
6. (2011-09-13). "Medicis agrees to sell LipoSonix system to Solta".
7. Kelsey Kaustinen. (2012-09-05). "Valeant nabs Medicis for $2.6 billion". [[Drug Discovery News]].
8. Loftus, Peter. (2011-09-02). "Health industry: Death Of Medicis CEO's Girlfriend Ruled a Suicide". [[The Wall Street Journal]].
9. "Jury finds Adam Shacknai responsible for Rebecca Zahau's hanging death".
10. "Civil jury says man responsible for woman's 2011 death at California mansion".
11. Bloomberg News via The New York Times. Sept 3, 2012. [https://www.nytimes.com/2012/09/04/business/valeant-to-buy-medicis-maker-of-dermatology-drugs.html Valeant to Buy Medicis, Maker of Dermatology Drugs]
12. Mark Scott for The New York Times. Sept 4, 2012. [https://dealbook.nytimes.com/2012/09/04/valeant-continues-its-string-of-acquisitions/?rref=collection%2Ftimestopic%2FMedicis%20Pharmaceutical%20Corporation&_r=0 Valeant Sticks to Torrid Pace of Deal-Making]
13. Angela Gonzales for the Phoenix Business Journal. Dec 11, 2012 [http://www.bizjournals.com/phoenix/news/2012/12/11/valeant-medicis-complete-26b.html Valeant, Medicis complete merger with Shacknai out]
14. Angela Gonzales for the Phoenix Business Journal. Dec 18, 2012 [http://www.bizjournals.com/phoenix/blog/business/2012/12/how-many-medicis-employees-lost-their.html How many Medicis employees lost their jobs in Valeant buy? A lot]
15. "Arizona Court Revives Product Liability Case, Abolishes Learned Intermediary Doctrine".
16. "Arizona Applies Consumer Fraud Act to Pharmaceutical Manufacturers".
17. "Amanda Watts, Plaintiff/Appellant, v. Medicis Pharmaceutical Corporation, Defendant/Appellee.".