Sandoz, the generics division of Swiss pharmaceutical giant Novartis, has signed a definitive agreement to acquire the US-based specialty dermatology generics company Fougera Pharmaceuticals for a cash consideration of $1.53bn.
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Novartis claims that this acquisition will strengthen Sandoz’s differentiated products strategy by complementing its existing global leadership positions in biosimilars and generic injectables, anti-infectives, and ophthalmics.
Based on 2011 IMS data, the combined businesses will become the number one global company in generic dermatology medicines, with estimated annual global sales of nearly $620m, primarily in the US.
Fougera, which posted net sales of $429m in 2011, has strong dermatology development and manufacturing expertise, with numerous launches planned for 2012 and beyond. It employs approximately 700 people across its two primary sites, located in New York.
Jeff George, global head of Sandoz, said: "The addition of Fougera’s leading portfolio further strengthens Sandoz’s differentiated products strategy and improves our ability to help patients and customers around the world by providing easier access to high quality, affordable dermatological medicines. Fougera brings us valuable technical capabilities in the area of topical dermatological products, particularly in the development and manufacturing of semi-solid forms such as creams and ointments."
Don DeGolyer, president of Sandoz US, said: "Fougera and Sandoz serve many of the same customers in the US, creating significant sales and cost synergies with Sandoz’s sizeable US generics business. We welcome the team from Fougera Pharmaceuticals into Sandoz and Novartis."