By Richard Collings

Published: July 27, 2009

   Clinical skincare business Murad is celebrating its 20^th anniversary with business up 15% so far this year, said Chief Operating Officer Richard Murad. This despite a difficult economic environment.

   The El Segundo, California-based company, which had revenues in excess of $100 million during 2008, believes it made a wise decision to stay family-owned after ending talks with listed cosmetics giant Estee Lauder a year ago, he said.

   Murad said internet sales are strong, but the company is up in all of its distribution channels, which includes professional, retail, direct-to-consumer and international. Murad continues to be the best selling clinical brand at Sephora and Ulta, Murad claimed, and is up “a startling 45%” at the 100-doors of Sephora inside the JCPenney department store chain.
   According to listed J. C. Penney, Inc.’s first quarter report released on June 10, 2009, the company expanded the number of Sephora store-within-a-store concepts by 14, or almost 15%, to a total of 105 JCPenney department store locations.
   During its negotiations with Estee Lauder, the company was represented by investment bank Goldman Sachs, and continues to welcome that entity’s “sound advice,” but Murad has no retention agreement with it or any other firm at this time.
   The clinical skincare brand is approached by venture capital firms on a regular basis, but is completely self-funded, and has no interest in obtaining financing or bringing in partners, Murad said. Concerning a sale or IPO in the future, “We never say never to anything,” he added.
   Murad explained the company's good fortune during a recession: “Success has come from hard work and a dedicated focus on making the best products that truly deliver on their promise. The truth is that we get smarter every year, and with 20 years in the business of clinical skincare we have a few more grey hairs than everyone else. Being the founders of this genre and the industry leader doesn’t hurt. There are many doctor brands, but Murad is an authentic brand and the consumer gets it.”

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