Headquartered in Azusa, California, Physicians Formula Holdings is a top-line growth cosmetics company which operates in the mass market prestige (masstige) market. The Physicians Formula brand was created in 1937 by Dr. Frank Crandall, a California allergist, for his wife, who had sensitive skin. Under the Physicians Formula brand name, the company develops and markets innovative, premium-priced products for the mass market channel. Instead of being driven by changing fashion trends, Physicians Formula differentiates itself by concentrating on a segment of the cosmetics industry that addresses skin imperfections. The company's products are sold in over 23,000 stores throughout the U.S. including Wal-Mart, Target, CVS, Walgreens, and Albertsons. The product lines address include face powders, bronzers, concealers, blushes, foundations, eye shadows, eye liners, brow makeup, and mascaras.
In November 2006, Physicians Formula Holdings completed an initial public offering of 7,500,000 shares, of which 4,375,000 shares were sold by stockholders. The offering was priced at $17.00 per share. Deutsche Bank Securities, Citigroup, Banc of America Securities, Cowen & Company, and Piper Jaffray were the lead underwriters of the offering. The company's net proceeds were used primarily to reduce debt and to pay IPO completion bonuses.