Mylan to buy Renaissance’s dermatology business in $1bn deal

Mylan will pay $950m in cash up front and up to $50m in future payments.

The deal adds about 25 branded and generic products, a 25-product pipeline and a dermatology-focused sales and marketing infrastructure to Mylan.

Mylan will also secure a manufacturing and development platform and acontract development and manufacturing organization, focused on topicals.

The acquired business employs about 1,200 employees and generated $370M in revenues in 2015.

The transaction, which is expected to be completed by the end of the third quarter, does not include Renaissance’s sterile-focused businesses and associated manufacturing plant.

Earlier this year, Mylan agreed to acquire Swedish specialty pharmaceutical firm Meda Aktiebolag, which also has a dermatology business.

Mylan CEO Heather Bresch said: "The dermatology/topicals space has long been an area of focus for Mylan and one that we have targeted for expansion. This is a strong and growing business in a very attractive category, which is highly complementary to Mylan’s existing assets and the pending addition of the Meda dermatology portfolio.

"We see significant opportunities to accelerate the growth potential of the Business as part of the global Mylan platform, as we maximize our combined assets across customer channels and geographies."

Mylan has lost its bid last year to acquire Irish over-the-counter drug specialist Perrigo for about $26bn.

The company offered $75 in cash and 2.3 ordinary shares for each Perrigo share. Perrigo has however called the Mylan proposal inadequate.

Image: Mylan has agreed to acquire Renaissance’s topicals-focused specialty and generics business. Photo: courtesy of stockimages/FreeDigitalPhotos.net.