Google Answers Logo
View Question
Q: LapBand valuation (part of Inamed/Allergan) ( Answered,   0 Comments )
Subject: LapBand valuation (part of Inamed/Allergan)
Category: Business and Money > Finance
Asked by: olegus88-ga
List Price: $30.00
Posted: 08 Oct 2006 08:37 PDT
Expires: 07 Nov 2006 07:37 PST
Question ID: 771698
Inamed Corp., maker of LapBand obesity treatment device, was
purchased by Allergan (NYSE:AGN)in March 2006 for $3.2bil. I am
looking for a valuation of LapBand component in this transaction
(preliminary info - it is $1B+) and LapBand line revenue numbers in
the last few years (possibly including 2006).

If figuring out this partial value is too tricky, the altenative could
be to have Inamed's total revenue numbers for the last few years in
addition to LabBand only sales.
Subject: Re: LapBand valuation (part of Inamed/Allergan)
Answered By: keystroke-ga on 29 Oct 2006 00:10 PDT
Hello olegus88,

Thanks for your question.

I was not able to find a definitive valuation of Lapband. I have
instead found the percentage of sales that they compose for Inamed. 
If it is valued by its percentage of sales in the past few years, it
would be worth about $864 million of the $3.2 billion.  However,
because sales of Lap-Band are only expected to grow, it could have
been valued at a higher price and $1 billion does not seem like an
off-the-wall number.

According to reports, most of Inamed's revenues actually come from
breast implants, which accounted for 55% of revenues in 2003 and 56%
in 2004. Chat with Allergan

"Turning to who is Inamed, this is a company with estimated revenues
of approximately 440, $450
million this year. 56% of business is breast anesthetics, 17% facial
anesthetics, and 27% obesity
intervention. Clearly, they are a global leader in dermatology and
plastic surgery, where
particularly their strength lies on the plastic surgery side."

At 27% of sales, Lap-Band is a large proportion but not nearly the
majority; the company's plastic surgery components are worth far more
in current sales.  However, the obesity market is growing faster than
the plastic surgery market (30% vs. 25% according to the above chat)
and so it is not too far-fetched that Lap-Band is worth $1 billion to

I found one source for the $1 billion figure.

Scientific Intake

"The Gastric Lap Band was recently valued at over $1 billion in the
Allergan acquisition of Inamed."


LapBand is approved and garners $24 million in sales.


Pharmaceutical Business Review-- Inamed

"On the financial front, in 2003, Inamed's sales of $332.6 million and
net income of $53.0 million generated sustained cash flow during the
year and increased financial flexibility for the company."


Boston Globe
"Medicis to buy Inamed"

"Santa Barbara, Calif.-based Inamed reported revenue of $384.4 million."

LapBand-- ~$56.5 million


Medical Marketing Association Award

LapBand $95 million


USA Today
"Medicis tightens face of vanity race with $2.8 billion bid for Inamed"

Search terms:
lap band sales million
inamed revenues million
lap band sales 2005

If you need any additional clarification, let me know and I'll be glad
to assist you.

There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy