GlaxoSmithKline is close to a deal to acquire Stiefel Laboratories Inc, a US maker of skin care pharmaceutical products, for about $3 billion, reported the Wall Street Journal on Sunday. The two companies are still discussing the terms of an agreement.

The deal for the closely-held pharmaceutical firm, which is part-owned by US buyout firm Blackstone Group LP, is expected to be announced today.

Stiefel claims to be the largest independent dermatology company in the world, with annual revenue of about $1 billion.

The transaction would boost the dermatology exposure of GlaxoSmithKline, whose current products range from vaccines and tuberculosis treatments to Aquafresh toothpaste and Tums antacids.

Stiefel drew interest from a number of major global drug companies, including Novartis, and Johnson & Johnson, after it was put up for sale earlier this year. (See: J&J, GSK, Novartis eye world's top dermatologist Stiefel).

Stiefel, which makes anti-itch creams, acne treatments and other products, has been controlled for more than 160 years by the founding Stiefel family. Blackstone invested $500 million in Stiefel in 2007.

Stiefel specialises in dermatological products, such as anti-itch creams and acne treatments, said to be to expecting $3 billion to $4 billion, the Wall Street Journal reported yesterday.

With a variety of both prescription and over-the-counter products, Stiefel could appeal to a number of large drugmakers looking to diversify their businesses.

The family members who run the company have resisted many take-over bids over the years, but recently the drug-development pipelines of the global pharma giants have been running dry and they have been aggressive in purchasing other companies to expand revenues.

After a spate of recent mega mergers in the pharmaceutical sector, global drug giants are now eying smaller rivals to enhance their product variants and expand their operations.

It is earlier reported that Glaxo was in early-stage talks to buy Indian generic drug maker Piramal Healthcare Ltd for about $1.5 billion.

However, Piramal Healthcare said the reports were just speculations. (See: Piramal Healthcare denies reports of Glaxo, Sanofi bid).

Some of the newest and best-known brands of Stiefel include Duac Topical Gel (an acne cream), Evoclin, Luxiq, MimyX, and Olux Foam. Last week it announced the US launch of Impruv, a line of dry skin products, effective for patients suffering with mild to severe dry skin.