Collagen Plans to Spin Off Implant Unit

Collagen Corp. said it plans to separate its profitable plastic surgery implant business, possibly through a spinoff or initial public offering. The unit makes and sells collagen and other implants used in plastic surgery. Collagen’s other business, Collagen Technologies, researches and develops collagen- and polymer-based products. It also develops products for soft-tissue repair, orthopedics, vascular surgery and ophthalmology. The companies focus on different businesses, said Collagen Chief Executive Howard Palefsky, and separating them is the best way to develop them. The new company will be called Aesthetic Technologies Corp. and will be headed by Collagen President Gary Petersmeyer. Palo Alto-based Collagen posted 1995 net income of $26.7 million, or $2.94 a share, on sales of $70.7 million.