Industry Executives Focus on Future of Aesthetic Market
B Y F R A N K E L L Y, C O N T R I B U T I N G E D I T O R
Blockbuster technologies and high growth categories dominated discussions at The Aesthetic Forum, an annual half-day event sponsored by Medical Insight, Inc. and the Aesthetic
Buyers Guide, featuring more than a dozen scientific experts,
CEOs and thought leaders in the aesthetic medical industry.
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Aesthetic Buyers Guide March/April 2007 www.miinews.com
The Aesthetic Forum
Steve Basta
CEO BioForm San Mateo, CA
John Calcagnini
Wall Street Analyst Los Angeles, CA
Robert Grant
President Allergan Medical Irvine, CA
Michael Moretti
President Medical Insight, Inc. Aliso Viejo, CA
The 2007 Aesthetic Forum was held in February, concurrent with the American Academy of Dermatology’s 65th annual meeting in Washington D.C., and was attended by more than 200 business executives, investors and analysts. This high profile group predicted remarkable growth for the $3 billion global category, fueled by pioneering facial and body treatments, increased procedure availability and cultural mainstreaming. Michael Moretti, president of Medical Insight, Inc. (Aliso Viejo, Calif.), opened the Forum with an optimistic five year forecast. “The global aesthetic market will continue to expand in a very sustainable way with an annual growth rate (CAGR) of approximately 13%,” he noted. “Facial injectables, body shaping devices, corporate aesthetic centers and aesthetic energy platforms will generate the highest CAGR over this time, accounting for more than $6 billion in revenues by 2011. Further driving this growth will be the entry of major health care and pharmaceutical companies including Johnson & Johnson (Los Angeles, Calif.), Galderma (Ft. Worth, Texas), Merz (Greensboro, N.C.), Procter & Gamble (Cincinnati, Ohio) and Pfizer (New York, N.Y.).” Jonah Schacknai, CEO, Medicis Aesthetics (Scottsdale, Ariz.) echoed Mr. Moretti’s positive view on market growth and claimed, “The aesthetic industry is still in its infancy,” with tremendous opportunity for both core and future technologies. “The companies in this room are aggressively targeting the one million women who are already in this category, yet our research indicates that there are 20 to 30 million women who are interested but not yet active participants,” Mr. Shacknai reported. “We need to educate the broader audience about the value proposition inherent in our products.” According to Robert Grant, president, Allergan Medical (Irvine, Calif.), “Companies that will be most successful will be those that can establish themselves in the consciousness of
households in mainstream America.” Allergan successfully executed this strategy with Botox® and has similar plans for JuvédermTM hyaluronic acid filler and the LAP-Band® system for obesity management. “Our direct-to-consumer marketing will drive demand to new heights,” Mr. Grant stated. “Allergan is committed to growing the entire aesthetic category.” John Calcagnini, a Wall Street analyst in Los Angeles, Calif., noted that investors have been enormously successful in the aesthetic market, anticipating continued growth and IPO activity. Mr. Calcagnini was particularly excited about longer lasting dermal fillers and how they may impact the market over the next five years.
“The global aesthetic market will continue to expand in a very sustainable way with an annual growth rate (CAGR) of approximately 13%.”
“History indicates that improved product duration can double the overall market size,” Mr. Calcagnini continued. “With a duration of more than 12 months, Radiesse (BioForm Medical, San Mateo, Calif.), is expected to expand the market with their ability to volumize the face and cheeks. Artes Medical (San Diego, Calif.), just announced their intention to seek FDA approval for an unprecedented five year duration for ArteFill®. Combined with emerging players in the $1 billion botulinum toxin segment, these developments will create a new paradigm for facial rejuvenation.” Future technologies on the horizon include Isolagen (Isolagen, Inc., Exton, Penn.), based
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The Aesthetic Forum
Matt Likens
CEO Ulthera Mesa, AZ
Annie Heremans, M.D., Ph.D.
Vice President of Research and Development Johnson & Johnson Los Angeles, CA
Dolev Rafaeli, Ph.D.
CEO of Radiancy Orangeburg, NY
on autologous fibroblast therapy, and Revance (Revance Therapeutics, Mountain View, Calif.), a topical botulinum toxin expected to launch in 2010. BioForm (San Mateo, Calif.), CEO, Steve Basta acknowledged three key market drivers predicted to increase penetration of the dermal filler category. Organic growth of 12% to 15% is expected from an aging population and increased acceptance of cosmetic procedures. Even more significant, however, will be the increased satisfaction with 12 month fillers like Radiesse and the ability to use these more robust fillers for facial contouring and volume treatment — procedures that are not cost efficient with most traditional fillers.
an in-depth look at their non-invasive alternative to liposuction. The Liposonix technology focuses ultrasound energy across the skin into the subcutaneous fat. Once the fat is disrupted by the energy, a wound healing response is triggered causing true volume reduction as macrophages transport the fat through the lymph system and out of the body. Mr. Quistgaard anticipates commercialization this year. Ulthera, (Mesa, Ariz.) showcased a unique use of ultrasound based technology that leverages intense ultrasound to selectively target deep, medium and superficial dermis for skin rejuvenation and tightening. CEO Matt Likens previewed Ulthera’s innovative “see and treat” platform, using ultrasound imaging to ensure optimal placement of the energy. This tabletop system offers real time visualization as the physician delivers the focused energy to the dermis, causing immediate collagen contraction, initiating wound healing and collagen remodeling. After two years of pre-clinical work, Mr. Likens expects FDA clearance in 2007 and has future indications in the pipeline. According to many of the afternoon speakers, home-based devices promise to invigorate market growth by bringing advanced aesthetic science into the homes of consumers. Dolev Rafaeli, Ph.D., CEO of Radiancy (Orangeburg, N.Y.), presented a case study on their successful at-home hair removal device, the No! No!. Launched in Chile in 2004, the No! No! uses a thermal mechanism — the Thermicon effect — to destroy hair follicles. Because the mechanism of action is heat based rather than light energy, the No! No! device can be used on any skin color. Clinical studies show a 48% reduction in hair count on legs after six weeks and 43% after 12 weeks. Sold in department stores in South America, Europe and Asia, the No! No! is expected to launch this year in the U.S.
“We need to educate the broader audience about the value proposition inherent in our products.”
New to the facial injectable market is pharmaceutical giant Johnson & Johnson with collagen based EVOLENCE from Colbar, currently in clinical trials in the U.S. Characterized as a bioactive dermal filler, EVOLENCE uses proprietary Glymatrix technology to create three-dimensional cross-linked collagen which mimics the dermis of the skin chemically, structurally and functionally. Annie Heremans, M.D., vice president of research and development at Johnson & Johnson, noted EVOLENCE is a highly biocompatible product that “supports normal housekeeping activities of the skin.” According to Dr. Heremans, EVOLENCE can be engineered to control durability and has shown clinical effects “beyond 12 months.” Ultrasound energy made two appearances on the podium. Jens Quistgaard, CEO of Liposonix, Inc. (Seattle, Wash.), gave
52 Aesthetic Buyers Guide March/April 2007 www.miinews.com
The Aesthetic Forum
Gurpreet Ahluwalia
Manager The Gillette Company Proctor & Gamble Cincinnati, OH
Art Clapp
Vice President of New Business Development Galderma Ft. Worth, TX
Fabian Tenenbaum
Vice President Syneron Richmond Hill, Ontario, Canada
Gurpreet Ahluwalia, manager, The Gillette Company (Proctor & Gamble), discussed their alliance with Palomar (Burlington, Mass.), recently in the news for the FDA clearance of the first home-based laser hair removal technology. This partnership intends to enter the mass market with a low fluence device, 3 to 15 J/cm, designed to arrest hair growth and switch hair cycles from growth to the resting phase. Mr. Ahluwalia also suggested that the perfect solution to at-home hair maintenance might rest in a combination of light-based technologies and chemical approaches, such as pairing the Palomar device with an enzyme-directed hair growth inhibition topical, i.e., eflornithine in Vaniqa (SkinMedica, Carlsbad, Calif.).
Galderma, a joint venture between Nestlé (Glendale, Calif.), and L’Oreal (New York, N.Y.), is best known as a powerful leader in the pharmaceutical industry, with brands including Tri Luma, Metrogel and Differin. Art Clapp, vice president of new business development, discussed the company’s vision to expand into the aesthetic dermatology arena. Mr. Clapp pointed out one of the largest category trends — the influx by noncore physicians such as family practitioners, gynecologists and osteopaths is changing the face of the provider network and allowing more consumers to have access to aesthetic procedures. Their much anticipated LED-based photodynamic therapy (PDT) product, is expected to launch in 2008. The program ended with news of a nano-topical hyaluronic acid, Hyalogy (DermAvance, Berwyn, Penn.), which is the only topical hyaluronic acid product with an ultra low molecular size of 5 nm. Validated by the Shimadzu Corporation (Kyoto, Japan), Hyalogy penetrates into the dermis to attract and retain moisture. Clinical studies show a reduction in periorbital fine lines when used twice a day for 11 weeks. This product is being marketed to physicians to enhance the effects of hyaluronic based facial injectables. All executives noted the changing landscape of the aesthetic market, involving younger “Generation Y” audiences and the proliferation of corporate aesthetic centers. Direct-to-consumer advertising and broad education campaigns demystify the procedures and fuel even greater demand. In the end, the consensus was that the aesthetic medical market is thriving, set on a fast-paced track for unprecedented growth. A DVD of The Aesthetic Forum is available. For more information, visit www.miinews.com.
All executives noted the changing landscape of the aesthetic market, involving younger “Generation Y” audiences and the proliferation of corporate aesthetic centers.
Syneron (Richmond Hill, Ontario, Canada), vice president, Fabian Tenenbaum strongly believed the advent of home-use devices would fit an unanswered need, the gap between simple, affordable over-the-counter products and energy based, higher priced medical grade devices. Mr. Tenebaum described the patented elos technology, currently being studied for athome skin rejuvenation, as using low optical fluence and avoiding the need for consumer self assessment. “Product development is close to commercialization, and future potential indications for elos technology may include cellulite, body contouring and hair removal.”
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