Taro Shareholder Value Creation and Strategic Overview
15
Alchemee Acquisition
Topical skin care products
proactiv proactiv
CLEANSE
1
CLEANSER
2
TONE
3
proactivea
2
proactiv
☐
REPAIR
ㅁ
ㅁ
proaction
3
In Feb. 2022, Taro acquired the Proactiv business and product line.
ㅁ
Proactiv is a line of topical skin care products with a core acne indication: the
products include cleansers and moisturizers as well as acne creams.
A majority of Proactiv sales occur through a subscription model, whereby
customers receive monthly shipments of products suited to their individual skin
types and needs. Proactiv also sells its products to retailers such as Target and
on Amazon.
Acquisition Rationale
Taro identified four key benefits from the Proactiv acquisition.
ㅁ
ㅁ
Expansion of consumer health business
Enhanced branded consumer health business
Strengthened leadership position in dermatology: Taro is elevated to a top 5
position in topical dermatology in the US consumer health market.
Creation of a comprehensive acne portfolio within the Sun group
Proactiv Product
◉
◉
◉
The original Proactiv 3-step skin care routine was dermatologist-developed and
launched in 1995. It has tremendous brand awareness especially in the USA
and Japan.
Proactiv has evolved from a single product direct-response company to a
diversified, omni-channel platform. It is sold direct-to-consumer, as well as, in
brick & mortar stores like Ulta, Target and CVS, and on e-Retailer sites like
Amazon.
Proactiv has a wide range of products beyond its well-known kits, ranging from
Clear Skin SPF 30, Hydrocolloid Blemish Patches, Post Acne Dark Mark Relief
and Post Acne Scar Gel.
In July 2023, Proactiv launched its newest skin care routine "Proactiv Clean," a
clean and gentle routine that smooths and helps calm skin while clearing mild
breakouts. It features mineral sulfur and salicylic acids with azelaic acid,
bakuchiol and chamomile, and formulated without parabens, phthalates,
sulfates, cyclic silicones.
TAROView entire presentation