Sanofi to sell skincare business to Canada's Valeant Pharmaceuticals for $425 mn
11 Jul 2011
Drug giant Sanofi, which in May this year shortened its name from Sanofi-Aventis by dropping Aventis, today said that it will sell its Dermik skincare business to Canada's Valeant Pharmaceuticals for $425 million in cash as part of the French pharmaceutical giant's plan to shed non-core assets.
Founded in 1947, Berwyn, Pennsylvania-based Dermik is one of the oldest dermatology companies in the US. While primarily a US company, Dermik has a significant presence in the medical dermatology market in Canada.
It currently markets a portfolio of 18 products, including 10 in the US. Dermik's portfolio includes therapeutic and aesthetic dermatology brands such as BenzaClin for the treatment of acne, Carac for the treatment of keratoses and Sculptra, a facial injectable for the correction of facial wrinkles and folds.
Many of Dermik's products are manufactured at the manufacturing and packaging facility located in Laval, Canada.
The deal includes Dermik assets, which consist of an aesthetic and therapeutic business in the US and Canada, as well as its global aesthetic business, which had sales of $206 million in 2010. Also included in the transaction is Sanofi's Laval, Canada site, which includes Dermik's manufacturing facility.
''Our strategy is based upon our growth platforms and innovation,'' said Christopher Viehbacher, CEO of Sanofi. ''This divestiture allows us to rationalise 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.''
