2007 Summer

Page 1

Medical

Technology

Skin Health

News Makers

Understanding Hair Damage

Skin Needs Protection Too

First Laser Expo

Meet Mark Kress

By Dr. John Gray

L’Oreal Sunscreen approved by the FDA

First Hair Society Hair Loss Laser Expo

Founder and CEO of Spencer Forrest International

pg. 14

pg. 17

pg. 20

pg. 4

The National Hair Journal

VOLUME 11 NO. 42 THE PROFESSIONAL PUBLICATION

OF

HAIR REPLACEMENT & RESTORATION

AND

Aderans Buying MHR Aims to boost its profile in the United States Tokyo, 05/07 - Aderans Co. Ltd., the world’s largest hair replacement company, is in final negotiations to buy Medical Hair Restoration (MHR) with headquarters in Maitland, Florida. In a press release issued in Tokyo, Aderans declared that the acquisition was expected to be completed by the end of June, 2007. MHR is the second largest hair restoration group in the United

Takayoshi Okamoto, Chairman, Aderans

Dr. Matthew Leavitt, Founder, MHR

States, in dollar terms, with clinics in fortyfour cities. It is a closely held company

with most of the stock owned by founder and Medical Director, Matthew Leavitt and his brother Michael. MHR entered into a joint marketing relationship with Hair Club for Men several years ago, but discontinued it after eighteen months. Aderans has announced its intention of keeping Medical Hair Restoration as an autonomous company and not merging it with its other cosmetic surgery group, Bosley, which it acquired in August, 2001. It is estimated that MHR and Bosley will jointly command 20% of the hair transplant market.

Regis Reconfigures for Growth Hair extensions seen a profit opportunity Minneapolis 4-07- Regis Corporation (NYSE: RGS) will merge its 51 accredited cosmetology schools with Empire Beauty Schools, Inc.’s 37 schools to become the largest provider of cosmetology education in North America with 88 schools in 18 states educating approximately 20,000 students per year. This new company will be called Empire Education Group, Inc. The deal should close on July 1, 2007.

In January Regis same-store sales at salons

Regis Corporation is the beauty industry’s global leader in salons, hair restoration centers and education. Owning, operating and franchising 11,773 worldwide locations; including 11,627 beauty salons, 90 hair restoration centers and 88 beauty schools with the Empire merger, operating under concepts such as Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle, Cost Cutters and Hair Club for Men and Women. Regis Corporation’s hair restoration centers offer three hair restoration solutions: hair systems, hair transplants and hair therapy. The number of customer visits at the Company’s Company-owned salons approximated 104 million on 2006.

Widow Sues Hair Transplant Group

BIG DOGS EYE BEAUTY MARKET

Regis Corporation announced the regular quarterly dividend of four cents per share will be payable to shareholders May 25, 2007. Regis sees fourth-quarter earnings between 53 cents and 60 cents, and predicted fiscal 2008 earnings could rise slightly. Regis expects samestore sales growth, or sales in stores open at least one year, to be between flat and 2 percent. Same-store sales are considered a key measure of a retailer’s financial strength because they measure growth from existing stores rather than growth from new stores. Analysts see a profit of $2.48 on revenue of $2.77 billion.

Jail Bait! Iranian hairdressers get uptight Tehran, 05/07 - In America, an extravagant mohawk hair style earned Sanjaya votes on the American Idol TV show, plus a slew of teenybopper fans. A mohawk in Iran however, may get you arrested. Mohammed Eftekharifard, head of the Tehran Union of Men’s Hairdressers, sent a letter to 2,000 Iranian barbers’ shops. He warned them to cut their services, stop plucking men’s eyebrows, dying hair odd colors and trimming locks into mohawk cuts and conspicuous spikes. The epitome of conservative fashion himself, Eftekharifard with his neatly trimmed hair wants to make sure his barber colleagues don’t get arrested. The Islamic Republic of Iran has long been known for its firm views on how women should look. They aren’t allowed to go out in public without a headscarf and are sometimes detained for showing too much hair. Now there is a new campaign in Tehran to enforce “Islamic norms” among men, including shunning the necktie, which is regarded as “too Western” and associated with memories of the late deposed Shah. Police hunting the streets and parks for immodestly dressed women in April, cautioned 16,000 women and 500 men in one week. Iranian

took a hit from bad weather, Chief Executive Paul Finkelstein said on a conference call with analysts. “We had many salons in Texas and Ohio open for literally an hour and closed because of ice or snow,” Finkelstein said. He suggested one way to lift sales in the coming months would be through the company’s hair extension business. A new venture with organic products company Intelligent Nutrients will sell organic dietary supplements, coffee and tea in its salons.

Los Angeles, 04/07 - Walter Riley was supposed to look better. Instead he died following a hair transplant operation that went terribly wrong. A year later, his widow is suing Crown Cosmetic Surgery for medical malpractice. Crown Cosmetic told the Journal that the tragedy may have been the result of an allergic reaction to the medication. President Mahmoud Ahmadinejad and his staff and dignitaries never wear ties including at official events where they address Heads of State or at the United Nations. The mohawk worn by Sanjaya on American Idol, also dubbed the “pony hawk,” started a tidal wave of requests to hair stylist everywhere from Idol wanabees who yearned to look like their hero. At www.americanidol.com you can follow the step by step instructions, courtesy of the Pantene™ product line, and Dean Banowetz. To coiff your own pony hawk, Dean, who has been Hair Stylist on American Idol since the show began, suggests you make seven pony tails secured by elastic bands. These ponytails are then backcombed, joined invisibly by barrettes and sprayed firmly into place. Now the mohawk is going mainstream; fashion houses are showing their own interpretation of 2007’s most memorable hair style, the mohawk, on their runway models.

New York, 05/07 – Venture capitalists are eying the personal care market as the next big profit opportunity for their deep-pocketed investors. Products targeted at the burgeoning baby-boomer segment continue to avoid aggressive price-competition and deliver fat profit margins According to Business Week; two trends are driving the market; changing demographics and the willingness of men and women to spend lavishly to keep their youthful appearance. The trend is facilitated by corporations and even the government as they offload more of the responsibility and cost of health care onto workers. Allergan Inc., a company that discovers and develops products such as runaway success Botox, saw sales exceed $1 billion in 2006, up from $239 million in 2000. Thermage Inc., another provider of wrinkle treatments, also received generous financing by Morgenthaler Ventures and Delphi Ventures, and went public in November. "This is going to be a giant field," says Robert T. Nelsen, managing director of ARCH Venture Partners, who backs Kythera Biopharmaceuticals Inc.

SKIN HEALTH SUMMER 2007

Hair Club Enforces Non-Competes Ex- Hair Club stylists in court for stealing clients Sacramento, 04/07 - In a complaint filed in U.S. District Court in Sacramento, Hair Club for Men alleges that Danielle Eaton and Tina Moskal violated the terms of Non-Compete Agreements the women each signed when hired by the company. From December 2006 to March 2007 at least 20 clients of Ms Moskal and 14 clients of Ms Eaton cancelled their appointments or contracts with HCM to continue with the services at Elite Solutions Hair Alternatives, a rival business where they were newly employed. Hair Club hired Frasco Investigative Services to observe Elite Solutions Hair Alternatives and surveillance evidence presented in court showed the ex-clients as they entered the business. The surveillance images were included in a recent court filing by Hair Club, which operates 90 restoration facilities nationwide and bills itself as, "The world's leading provider of all proven hair loss solutions". Hair Club, which won a March 22 temporary restraining order against Eaton and Moskal, is a division of the publicly-held Regis Company. Hair Club was founded nearly 30 years ago by Sy Sperling, who became a household name after starring in the company's TV commercials declaring "I’m not just the president, I'm also a client." In 2004, Regis bought Hair Club for $210 million.

Hello Robots

Good-Bye Medical Assistants Palo Alto, CA. 05/07 - Ready to put your feet up while the robot does the work? Restoration Robotics Inc. is testing a robotic device that performs hair transplants. Transplant-surgery outcomes can vary according to the surgeon's skill. Restoration's robot -- which is surgeoncontrolled -- produces uniform results in half the time, says CEO Jim McCollum. When can you expect to meet your new employee? It’s still in the research phase we’re told, but the technology has arrived!


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2007 Summer by The International Hair Authority - Issuu