LEO Pharma has entered into a definitive agreement to buy Bayer’s global prescription dermatology unit. The portfolio to be acquired includes branded topical prescription treatments for acne, fungal skin infections and rosacea, and a range of topical steroids with an annual turnover in 2017 of more than 280 million euros. It will enable LEO to expand significantly in key markets worldwide and broaden its therapeutic areas.
Bayer’s global medical dermatology portfolio will include prescription treatment solutions for acne (Skinoren®), fungal skin infections (Travogen® and Travocort®) and rosacea (Finacea®), and a range of topical steroids (Advantan®, Nerisona®, and Desonate®). The transaction does not include Bayer’s over-the-counter dermatology portfolio of brands such as Bepanthen® and Canesten® amongst others.
LEO Pharma will acquire the global product rights, except for Afghanistan and Pakistan, and take over the sales and marketing organisations in 14 countries, as well as a factory in Segrate, Italy. In total, around 450 people will join the company as part of this transaction. The combination of the local sales and marketing organisations will make LEO Pharma more efficient.
Gitte P. Aabo, President and CEO of LEO Pharma said, “We are very excited about this agreement. With the new prescription dermatology brands and colleagues from Bayer, LEO Pharma advances towards our goal of helping 125 million patients by 2025. We will broaden our treatment range and enhance our size in key markets around the world.”
Heiko Schipper, member of Bayer’s Board of Management and President of Consumer Health said, “We are very pleased to have found a good partner in LEO Pharma, who has a long history as a leader in scientific advancement and a culture that values discovery and innovation. With the dedicated support of many employees to whom we are grateful, our prescription dermatology business has grown well since becoming part of Bayer in 2006. Moving forward, we believe that LEO Pharma is the right owner to grow and further develop the prescription dermatology business while enabling us to focus on building our core over-the counter brands”.