Breast Implant Manufacturer Mentor Acquired by Johnson & Johnson
With the troubled market, Mentor tried to boost sales of silicone breast implants, which have typically generated twice the revenue as saline implants since the FDA lifted the ban on them two years ago. Michael Weinstein, a JP Morgan analyst, believes that the acquisition by JNJ was a result of recent economic issues faced by Mentor Corp., which ultimately forced them to succumb to the deal.
Although 90% of Mentor’s income is generated from breast implants, they have decided to increase their profile by adding a new botulinum toxin-derived product to their line. PurTox is a neurotoxin that relaxes facial wrinkles and FDA approval is expected sometime in 2010. The new product will place Mentor in direct competition with Allergan Inc., the maker of Botox.