Cynosure weighs sale in strategy review

Bloomberg

Cynosure Inc., the maker of lasers
for medical and cosmetic treatments, is exploring strategic options including
a sale, according to people familiar with the matter, amid increasing interest in the technology from larger global companies.
Cynosure is in talks with financial advisers as it weighs strategic options, the people said, asking not to be identified because the deliberations are private. A potential sale of the business, which has a market value of about $1 billion, may attract companies with a presence in aesthetic treatments, such as Botox maker Allergan Plc, as well as other medical-device businesses, the people said.
A representative for Westford, Massachusetts-based Cynosure didn’t immediately respond to messages seeking comment outside of regular business hours. A spokesman for Allergan declined to comment. No final decision has been made, and the company may choose not to pursue a sale, the people said.
Cynosure could be the biggest sale of a medical laser system company in more than a decade, according to data compiled by Bloomberg. While spending on health-care products deals has risen 37 percent in the last 12 months to $124.3 billion, laser systems have been a small fraction of that, accounting for just $77 million, the data show.
In October, Cynosure Chief Executive Officer Michael Davin said the company was planning to use part of its cash to buy back stock and make acquisitions and that he didn’t pay “a lot of attention to” talk that it could be purchased. Stifel Financial Corp. analysts had suggested both Cynosure and rival Zeltiq Aesthetics Inc. would be attractive to larger health-care companies including Nestle SA’s Galderma or Germany’s Merz Pharma & Co. Cynosure makes light-based systems used for treatments such as hair and tattoo removal and and scar reduction, according to its website. It holds 37 US patents. The company is scheduled to report fourth-quarter earnings on February 7.