Johnson & Johnson to acquire NeoStrata

By Deanna Utroske contact

- Last updated on GMT

Johnson & Johnson to acquire NeoStrata
The deal, announced just this week, will give J&J a stronger position in the skin care category, particularly the anti-aging segment.

Financial terms of the acquisition have not been made public. But pending standard approval and closing conditions, the deal is expected to close by the end of June 2016. As part of the purchase, Johnson & Johnson is also picking up NeoStrata’s parent company TriStrata.

Cosmeceutical knowledge

The acquisition is a move to further J&J’s knowledge of skin care and anti-aging research.

NeoStrata is known as a global leader in dermocosmetics, the space where cosmetics and pharmaceuticals meet. The New Jersey–based company prides itself on a portfolio of skin care products and is respected for influencing industry anti-aging technologies with its research on Alpha hydroxyl acids.

“Drs. Ruey Yu and Eugene Van Scott formed NeoStrata in 1988 and continue to make significant contributions to the science of skincare,”​ observes Jorge Mesquita, worldwide chairman of the consumer division at Johnson & Johnson, in a company media release about the deal. “NeoStrata's legacy in dermocosmetics will complement our global Consumer portfolio and enable us to deliver advanced skin care brands to consumers around the world.”

Expanded reach

The NeoStrata acquisition will of course grow J&J’s skin care business, in terms of both market share and the employees at work in the consumer division. From the sounds of it, NeoStrata professionals in and beyond R&D will become part of Johnson & Johnson’s staff.

“NeoStrata and Johnson & Johnson share a strong history of innovation and together we will work to discover important new skin care solutions grounded in deep human insights and compelling science,” ​says Mesquita. “We look forward to working closely with NeoStrata's distributors around the world and having their outstanding team of employees join Johnson & Johnson Consumer later this year.”

Advancing anti-aging

Improved and emerging science as well as consumer trends and the realities of longevity are impacting the anti-aging category. A few notable new directions in anti-aging​ include multifunction color products that simultaneously blur lines upon application and deliver long-term benefits.

Plus, more and more anti-aging products address areas beyond the face, such as the neck and hands which show age all the more drastically as facial skin care keeps consumers looking younger longer. Additionally, new actives and ever more nuanced formulations keep the product launches coming in this specialized category. This last facet is where the J&J acquisition will likely make the biggest impact.

Related topics: Business & Financial, Anti-Aging, Skin Care

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