BASEL (dpa-AFX) - Novartis AG (NVS) said it has signed a definitive agreement to acquire specialty dermatology generics company Fougera Pharmaceuticals. As per the terms of the agreement, Novartis will acquire the business, which is based in Melville, New York, for US$1.525 billion in an all-cash transaction.
The sellers are comprised of a consortium of private equity funds led by Nordic Capital, DLJ Merchant Bankingand Avista Capital Partners.
The company said that the acquisition creates another strong global growth platform for Sandoz, the generic pharmaceuticals division of Novartis.
Fougera is a specialty dermatology business with 2011 net sales of US$429 million, and employs approximately 700 people across its two primary sites, located in New York.
According to the company, Fougera Pharmaceuticals operates two main businesses: Fougera, a leading player in the USD 2.1 billion US dermatology generics sector with 45 products and more than 200 SKUs and PharmaDerm, a branded specialty pharma business with 17 brands and over 40 SKUs.
The transaction requires regulatory approvals and is expected to be completed in the second half of 2012. The transaction is expected to be accretive to core earnings per share and will be financed from the Group's existing cash resources and cash flow, the company said.
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