Inamed Faces SEC Probe Over Disclosures

Inamed Corp. said Wednesday that U.S. regulators had started a formal investigation into its disclosures about one style of its silicone gel-filled breast implant products.

The Santa Barbara-based company said in its annual report that it received notification of the Securities and Exchange Commission investigation on Feb. 24 and that it intended to cooperate fully.

Inamed develops and manufactures a line of healthcare products, including breast implants, dermal fillers to correct wrinkles and an intragastric balloon system to treat obesity.

Inamed said the type of implants in question, Style 153, accounted for about $3.4 million, or less than 1%, of its total revenue in 2004. The company said it believed its disclosures about its breast implants were in compliance with federal securities laws.

Dan Cohen, vice president of global corporate and government affairs at Inamed, said the company had not seen any spike in product liability claims for the Style 153 implants, which have been on the market since 1991.

The FDA banned silicone implants in 1992 for general use because of safety concerns, but they are currently approved for reconstruction procedures.

Shares of Inamed fell $2.25 to $67.16 on Nasdaq.