Spinner on the block

While Collagen Aesthetics Inc. has made a business of spinning out and selling businesses, CGEN now has itself on the block after device manufacturer Mentor Corp. (MNTR) made an unsolicited proposal to acquire CGEN at $14.50 per share. The bid, which CGEN is mulling over, prompted the company to say it will explore other alternatives to maximize shareholder value including a sale or merger.

CGEN, which sells collagen implants, a viscoelastic gel, a facial implant and other skin products, posted $22.7 million in sales in its second quarter ended Dec. 31, helping to generate $2.3 million ($0.27) in net income. But its long suit has been spinning out companies...