Sandoz has completed its USD1.525bn acquisition of specialty US dermatology company Fougera Pharmaceuticals on a cash and debt free basis.
Fougera had net sales of USD 429m in 2011 in the US alone and, combined with Sandoz’s existing generic dermatology franchise, this positions Sandoz as the number one in generic dermatology medicines both globally and in the US.
Fougera has strong dermatology development and manufacturing expertise, particularly in the area of semi-solid forms such as creams and ointments, as well as a well-known branded business, PharmaDerm.
"We are pleased to combine Fougera’s strong portfolio and pipeline of dermatology medicines with Sandoz’s existing global leadership positions in biosimilars and generic injectables, ophthalmics and antibiotics," says Sandoz’s global head Jeff George. "This will significantly enhance the range of affordable, high-quality medicines that Sandoz can offer to patients and payors in the US and around the world."
Dermatology generics is an important and rapidly-growing segment of the US market, which IMS estimated at USD2.1bn in 2011 sales and which had strong double digit annual growth between 2009 and 2011. Dermatology covers a range of often complex diseases from acne to psoriasis to fungal infections to skin cancer.
In addition to building on the two companies’ overlapping customer base in the US, Sandoz will leverage its position in the US generics sector and its presence in over 140 countries to expand Fougera’s broad dermatology portfolio to new markets around the world.
"We welcome Fougera into Sandoz and Novartis and we look forward to working together to meet the needs of all our stakeholders," says Don DeGolyer, president of Sandoz US. "Sandoz and Fougera share a strong culture based on quality, excellence, and a determination to succeed in the interests of the patients we serve."
The sellers comprise a consortium of private equity funds led by Nordic Capital Funds V and VI, including DLJ Merchant Banking Partners (a Credit Suisse affiliate) and Avista Capital Partners.
