Zeltiq Aesthetics Inc. (NASDAQ:ZLTQ)
Zeltiq Aesthetics Inc. (NASDAQ:ZLTQ) has been purchased by Allergan plc (NYSE:AGN) in a deal worth $2.47 billion – $56.50/share. ZLTQ closed at $49.40 on Friday and are trading in Monday’s pre-market session around $55.55 – up over 12%. Volumes are heavy. Average daily volume for ZLTQ is just over 700k but this morning already over 3.6 million shares have traded hands.
Zeltiq Aesthetics Inc. is a medical technology company, based in Pleasanton, CA, that develops products utilizing its proprietary controlled-cooling technology platform – the CoolSculpting system. Designed to reduce unwanted fat, CoolSculpting is based on the scientific principle that fat cells are more sensitive to cold than the overlying skin and surrounding tissues. CoolSculpting utilizes patented technology of precisely controlled cooling to reduce the temperature of fat cells in the treated area, which is intended to cause fat cell elimination through a natural biological process known as apoptosis.
Dublin, Ireland-based Allergan plc (NYSE:AGN) is a global pharmaceutical company. Allergan is focused on developing, manufacturing and commercializing branded pharmaceuticals, devices, and biologic products for patients around the world. Allergan is a constituent of the S&P 500 and has a market cap of over $95 Billion with over $15 Billion in annual sales.
Brent Saunders, Chairman and CEO of Allergan stated in a press release – “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”
NASDAQ:ZLTQ shares are trading 25% above Friday’s close of $49.40. AGN Shares are down about 1% to $244. Zeltiq Aesthetics, Inc. shares have performed well for investors over the past year – up almost 150% before this morning’s news. In 2015 the company posted their best EPS yet – a gain of $1.08 on sales of $255.4 million. Of the eleven firms that follow NASDAQ:ZLTQ, ten rated the shares as a “Strong Buy”.
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