Long Beach, CA
562.628.1007
www.obagi.com

Sales: $121 million. Net income: $16 million.

With sales up 5.8% from last year, Obagi continues its impressive growth by focusing on expanding existing accounts while launching new products. One of its newer products, ReGenica Facial Rejuvenation Complex, was launched at the beginning of 2013 in partnership with Suneva Medical, Inc., a rapidly growing aesthetics company.

“We believe this relationship will accelerate our penetration in the marketplace and bring ReGenica Facial Rejuvenation Complex to more physicians in need of a cutting edge post-procedure solution and are excited to have a company as successful as Obagi as our partner,” said Nicholas Teti, chairman and chief executive officer of Suneva Medical.

The new technologically advanced product supports the rapid improvement in the appearance of post-laser skin by promoting the growth of new stem cells. Its Multipotent CCM (Cell Conditioned Media) Complex, developed by Dr. Gail Naughton, is composed of active growth factors and proteins that are not found in any other skin care product.

“The addition of the ReGenica line solidifies already existing evidence that Obagi is dedicated to delivering the efficacious, innovative products to patients seeking real solutions,” said Al Hummel, Obagi’s president and CEO. ‘The Facial Rejuvenation Complex addresses the need for the post-procedure skin care treatments that are not only gentle and safe for compromised skin, but also accelerate the visible improvement in the appearance of side effects associated with procedures.”

Its other new product, Obagi Hydrate, is already making an impressive impact in sales. Offered as both a vital component in the established Nu-Derm System and as a stand-alone product, Obagi Hydrate is credited with driving an increase in Nu-Derm sales and re-introduction of product sales in Texas. Obagi Hydrate, unlike other moisturizers, features an innovative technology called Hydromanil that captures water and assimilates it into the skin to help reduce water loss on the skin’s surface for a greater period of time.
Clinical trials have shown a 51% improvement in moisture loss after eight hours and a 92% improvement in the skin’s moisture retention within two hours.

Long Beach, CA
562.628.1007
www.obagi.com
Sales: $114 million.
Net income: $10 million.

Based on a 2011 study by Kline & Co., Obagi is the leading skin health company in the physician-dispensed channel, with an estimated 30.1% market share, nearly two times the market share of the next largest competitor.

Obagi’s topselling Nu-Derm range is turning 25 next year.

Obagi systems and products are designed to prevent and improve the most common and visible skin disorders in adult skin, including premature aging, photodamage, hyperpigmentation (irregular or patchy discoloration of the skin), acne, sun damage, facial redness, and soft tissue deficits, such as fine lines and wrinkles. Products are sold through a direct sales force in the US and internationally through distribution partners in more than 43 countries across North America, Central America, Europe, the Middle East and Asia.

This year, for the second year in a row, Obagi Medical Products was named as the “The Best Skin-Care System at a Doctor’s Office” by New Beauty magazine.

“We are honored to be named, once again, the top skin care system from a physician’s office,” said Jim Hartman, vice president of global marketing and business development at Obagi Medical Products. “Being acknowledged in 2011 and now in 2012, by consumers, along with such an esteemed group of beauty insiders and industry professionals, makes it that much more significant.”

In 2013, The Obagi Nu-Derm System turns 25. It was launched in 1988 and consists of a combination of six prescription, OTC therapeutic agents and adjunctive cosmetic skin care products to treat visible skin conditions such as photodamage and hyperpigmentation resulting from extrinsic damage and intrinsic changes to the skin.

The Obagi Nu-Derm System accounted for approximately 53% of net sales for the year ended Dec. 31, 2011, according to the company.

Long Beach, CA

562.628.1007

www.obagi.com

Sales: $112 million

Sales:

$112 million. Net income: $9.5 million.

Sales rose more than 8% last year, but net income dropped nearly 16%. The company blamed the decline in profit to selling, general and administrative expense.

Women of color have unresolved skin challenges, according to the results of consumer poll released by Obagi last month. The company surveyed more than 1,000 women within the wide range of “skin of color.” The results indicated that regardless if a woman is of African-American, Hispanic, Asian or Middle Eastern descent, one thing holds true: she most likely has unresolved skin challenges.A prominent concern among women with skin of color is related to pigment. Obagi found that while 47% see a dermatologist for dark spots, uneven skin tone or hyperpigmentation, just 11% of those surveyed women expressed a strong familiarity with hydroquinone. In, fact, 61% of the women were not at all familiar with the ingredient and 58% of surveyed women say they struggle to find skin care products that meet their needs, suggesting an opportunity to further educate consumers about available treatments. Furthermore, even when they have found products they are willing to purchase less than half of those polled (47%) said their current regimen meets their expectations, despite the fact that most of the women (52%) spent more than $100 on skin care products in the last year.

Obagi also uncovered a lack of concern over one of the most common causes of discoloration: sun exposure. Most of the women surveyed claim to wear a sunscreen with an SPF rating of at least 15 every day; however 16% of those who don’t wear sunscreen believe it’s not important for skin of color.

“Obagi Medical commissioned this poll to help us better understand the needs and concerns of our consumers,” Jim Hartman, VP-global marketing and business development said. “The results indicate to us that we have an opportunity and obligation to educate women about the treatments that are available for many of the skin conditions noted; and that partnering with a physician is critical in achieving desired results.”

Obagi
Long Beach, CA
562.628.1007
www.obagi.com
Sales: $104 million

Sales: $104 million. Net income: $12.5 million.

Corporate sales rose $2 million last year. For the first quarter of 2009, sales fell more than 10% to $22.6 million. Still, the company said its new Rosaclear System was well received. It is billed as the first prescription-based, physician-dispensed system developed specifically for treating the signs and symptoms of rosacea. Rosaclear was introduced in late January and during the quarter contributed $1.3 million in net sales.

Net income in the first quarter tumbled from $3 million to $645,000.

In April, Obagi announced it would focus on the physician-dispensed market and discontinue distribution in the pharmacy channel.

Long Beach, CA
562.628.1007
www.obagi.com
Sales: $102 million

Sales:

$102 million. Net income: $15.2 million.

Obagi Medical Products is the largest player in the U.S. professional skin care market. Sales jumped 32% last year and net income was up 142%.

Looking ahead, Obagi management estimates sales for 2008 to be in the range of $120 million to $125 million.