NEW YORK (AP) -- Merz Pharma Group of Germany said Monday it will buy BioForm Medical Inc. for $253 million cash, expanding its aesthetic medicine business.
Frankfurt-based Merz, which is privately held, is offering $5.45 cash for each BioForm share, a 60 percent premium over BioForm's closing price of $3.40 Thursday.
In morning trading, BioForm stock jumped $2.05 to reach the Merz offer price. It peaked at $5.47. Over the past year the stock has traded between 76 cents and $4.20.
BioForm, based in San Mateo, Calif., develops products used in cosmetic medical procedures like Radiesse, which is used as a dermal filler and as a treatment for vocal fold insufficiency, a condition in which the vocal folds cannot move normally.
Its Coaptite injectable implant is used as a treatment for female urinary incontinence. Boston Scientific Corp. markets Coaptite in the U.S. for female stress urinary incontinence.
BioForm is developing a surgical adhesive intended to be used in repairing large blood vessels and an injectable treatment for varicose veins.
The company reported $66.5 million in revenue for the fiscal year ended June 30, and expects revenue of $64 million to $70 million in fiscal 2010.
The boards of both companies have approved the deal, which is expected to close in the first quarter. After it is complete, BioForm will be renamed Merz Aesthetics.