Biotech Values

[DewDiligence]

Soft Economy Nips Cosmetic Procedures

http://online.wsj.com/article/SB123801795012941453.html

›MARCH 25, 2009

The struggling economy cut into plastic surgery last year as spending on cosmetic procedures drooped, but less-invasive procedures like Botox injections continued to grow [worldwide 2008 Botox sales were up 7% vs 2007 in constant currencies, but 4Q08 sales were up only 2% vs 4Q07 in constant currencies], the American Society of Plastic Surgeons said.

A total of $10.3 billion was spent last year on cosmetic procedures, a category that excludes reconstructive surgeries. That represents a 9% drop from 2007. [These figures are for the US market only.]

Cosmetic surgeries fell 9% to 1.7 million compared with 2007, according to the Arlington Heights, Ill.-based society. Of that total, breast augmentation dropped 12% to 307,000 procedures, and liposuction fell 19%. Tummy tucks tumbled 18% to 122,000. [Quiz: The three procedure types just mentioned are in the top-5 ranking of invasive cosmetic procedures; what are the other two?].

But society president Dr. John Canady said in a statement that business will recover with the economy and as the children of baby boomers start to consider surgery.

He said that repeat patients and those who put off more extensive surgery likely bolstered the number of lower-impact, minimally invasive procedures. They grew 5% to 10.4 million. Botox injections grew 8% to five million [in the US market], while laser hair removal fell 2%.

Reconstructive surgeries, a category that includes tumor removal, hand surgery and breast reduction, grew 3% to nearly five million.

The society represents more than 6,700 doctors. It compiled the procedure totals by using an online national plastic surgery database and an annual doctor survey. The margin of error was plus or minus 3.3%, the society said.‹