Sandoz has completed its $1.525 billion acquisition of specialty US dermatology company Fougera Pharmaceuticals on a cash and debt free basis.
Fougera had net sales of $429 million in 2011 in the US alone and, combined with Sandoz’s existing generic dermatology franchise, this positions Sandoz as the new #1 in generic dermatology medicines both globally and in the US. Fougera has strong dermatology development and manufacturing expertise, particularly in the area of semi-solid forms such as creams and ointments, as well as a well-known branded business, PharmaDerm.
“We are pleased to combine Fougera’s strong portfolio and pipeline of dermatology medicines with Sandoz’s existing global leadership positions in biosimilars and generic injectables, ophthalmics and antibiotics,” said Sandoz’s global head Jeff George. “This will significantly enhance the range of affordable, high-quality medicines that Sandoz can offer to patients and payors in the US and around the world.” Dermatology generics is an important and rapidly-growing segment of the US market, which IMS estimated at USD 2.1 billion in 2011 sales and which had strong double digit annual growth between 2009 and 2011. Dermatology covers a range of often complex diseases from acne to psoriasis to fungal infections to skin cancer.
In addition to building on the two companies’ overlapping customer base in the US, Sandoz will leverage both its leading position in the US generics sector and its presence in over 140 countries to expand Fougera’s broad dermatology portfolio to new markets around the world.
“We welcome Fougera into Sandoz and Novartis and we look forward to working together to meet the needs of all our stakeholders,” said Don DeGolyer, President of Sandoz US. “Sandoz and Fougera share a strong culture based on quality, excellence, and a determination to succeed in the interests of the patients we serve.” Fougera, whose history as a leader in US dermatology goes back more than 160 years to its founding in 1849, will be integrated into Sandoz’s US business based in Princeton, New Jersey, but will continue to exist as a separate legal entity. Fougera, based in Melville, New York, will be home to a new center of excellence for generic dermatology development and manufacturing within the global Sandoz network.
Fougera Pharmaceuticals currently employs approximately 700 people across its US sites. It operates two main businesses: Fougera, a leading player in the 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.