Financial weekly Barron’s and TV stock guru Jim Cramer are touting Irvine-based Allergan Inc.’s growth potential as an aging population ramps up spending on its looks.
In an article earlier this month, Barron’s said that Allergan, maker of Botox and other wrinkle treatments, is set to see increased profits from the baby boomer generation.
It also could see more sales if Botox is expanded to more medical uses.
Botox yearly sales total about $1.3 billion and could grow if the Food and Drug Administration approves it for treatment of migraine headaches, Barron’s reported.
Wells Fargo & Co. predicted there is a 60% chance the FDA will approve Botox for migraines in July, according to Barron’s.
CNBC personality Cramer, who is high on Allergan and sometimes has Chief Executive David Pyott as a guest, likes to say “vanity is en fuego” as a reason to own Allergan shares.
Wrinkles aren’t the only physical condition Allergan stands to make money on.
Allergan also makes the Lap-Band device for weight loss and started a campaign about the health dangers of obesity.
The drug maker wants Congress to commit to supporting obesity prevention and treatment options, including weight-loss surgery for people who are more than 100 pounds overweight—a core market for Lap-Band.
Allergan said it wants to influence insurance companies, including health maintenance organizations, to cover all or part of weight loss surgery, which could increase Lap-Band sales.
Some preferred provider plans, which generally require their members to pay more out-of-pocket costs than HMOs, cover weight-loss surgery in part, particularly for those with weight-related conditions such as diabetes.
Only a handful of states mandate that group health insurance plans cover surgical treatment of severe obesity.
Lap-Band, which Allergan got through its $3 billion buy of Santa Barbara’s Inamed Corp. in 2006, made up $61 million of Allergan’s $1.1 billion in first-quarter sales.
Talbert Acquired
Talbert Medical Group Inc., a Costa Mesa-based doctors’ group that covers more than 67,000 patients in Orange and Los Angeles counties, was bought earlier this month by Torrance’s HealthCare Partners Affiliates Medical Group.
A purchase price wasn’t disclosed.
Keith Wilson, Talbert’s president and chief executive, is staying on as a regional medical director for HealthCare Partners.
Talbert, which was founded 40 years ago, has 115 primary care doctors and specialists. It owns and operates 10 medical offices, including ones in Anaheim, Fountain Valley, Huntington Beach, Santa Ana and Tustin.
The group practice also has four walk-in clinics, including ones in Anaheim and Fountain Valley.
HealthCare Partners manages and operates medical groups and doctors’ networks in California, Florida and Nevada, along with the Camden Group, a national consulting firm. Its California doctors’ group has more than 1,200 employed and affiliated primary care doctors and more than 3,000 employed and contracted specialty doctors.
Enclarity’s Funding
Enclarity Inc., an Aliso Viejo maker of software used by healthcare payers, recently got an undisclosed amount of funding from Emdeon Inc., a healthcare payment technology company based in Nashville, Tenn.
Emdeon, which is publicly traded, said in a release that its minority investment would go toward developing and implementing several of Enclarity’s healthcare efficiency projects.
Privately held Enclarity makes software for claims processing, regulatory compliance and market analysis in the healthcare information area.
Previously, Enclarity, which was founded in 2005 by former Fair, Isaac & Co. executive Sean Downs, received venture capital investments from Bain Capital Partners, the venture arm of Boston-based Bain Capital LLC, and Ignition Partners, a Seattle venture firm.
Clarification
A caption in my May 17 story about Ed-wards Lifesciences Corp. should have said that the company’s first-generation Sapien less-invasive heart valve is on track for U.S. approval in 2011. The Sapien XT, a next-generation valve, was recently approved in Europe and is being studied in Japan.
Bits & Pieces:
The California Dental Association held its biannual convention earlier this month at the Anaheim Convention Center. The event, which drew about 26,000 dentists and dental professionals, was centered on the relationship between mouth health and overall health … San Clemente-based behavioral health treatment company Sovereign Health of California said it bought Rebecca’s House, a Lake Forest provider of eating disorder treatments. A purchase price wasn’t disclosed … Word & Brown Cos. in Orange launched HealthCompare Insurance Services Inc., which offers healthcare benefit selections from nearly 200 health insurance companies online.
