Valeant To Buy Dermik from Sanofi
Valeant announced today the acquisition of Demik, a dermatology unit of Sanofi in the US and Canada. Purchased for $425 million, Valeant will acquire all of Demik’s assets including available inventories of about $18 million.
Dermik, known for its significant presence in the medical dermatology market, has a portfolio of brands that include leading therapeutic and aesthetic dermatology products such as Benzaclin®—for treatment of acne, Carac®—for treatment of keratoses, and Sculptra®—facial injectable for wrinkle and cold correction.
Also included in the purchase is Sanofi’s Laval, a Canada site that holds Dermik’s manufacturing facility. Dermik’s manufacturing production on site produces approximately 70 formulations and over 200 tablets, capsules, non-sterile liquids, ointments and creams. Dermik’s total 2010 revenues are approximately $240 million, from production of Sanofi products as well as 3rd party interests.
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"We are pleased to add another strong dermatology franchise to our growing operations in the U.S. and Canada," stated J. Michael Pearson, Valeant Chairman and Chief Executive Officer. "Dermik's assets, both in the medical and aesthetic therapeutic areas, provide us with exciting opportunities to leverage our combined portfolios in our current markets as well as options to expand Valeant's presence to other territories. Furthermore, the manufacturing facility will provide increased capacity for our future growth initiatives in the U.S. and Canada."
Sanofi decided to sell its dermatology division with the intention to concentrate on its growth platforms.
“Our strategy is based upon our growth platforms and innovation,” declared Christopher A. Viehbacher, Chief Executive Officer of Sanofi. “This divestiture allows us to rationalize our portfolio and improve focus on our core businesses. Our manufacturing operations in Laval and our field operations teams will benefit from Valeant’s stronger presence in dermatology.”