- Strategic Divestiture to focus on Growth Platforms in the United States and Canada -
Sanofi (EURONEXT: SAN) (NYSE: SNY) announced today the strategic divestiture of its dermatology business, Dermik, to Valeant Pharmaceuticals International Inc. (NYSE/TSX: VRX) ("Valeant"), for a total cash consideration of US $425 million. Valeant is a pharmaceutical company focused on the neurology and dermatology therapeutic areas, based in Mississauga, Ontario, Canada.
Dermik has a significant presence in the medical dermatology market in the United States and Canada with a strong field force and well-known brands. Dermik's portfolio includes leading 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.
The scope of this transaction includes Dermik assets, which consist of an aesthetic and therapeutic business in the United States and Canada, as well as an aesthetic business around the world with sales of US $206 million in 2010. Also included in the scope is Sanofi's Laval, Canada site, which includes Dermik's manufacturing facility. Sanofi's Canadian affiliate, sanofi-aventis Canada, will maintain its operations in greater Montreal.
Sanofi decided to divest its dermatology business with the intention to further concentrate on its growth platforms. Sanofi believes that Dermik will benefit from being part of a larger dermatology business.
Commenting on the agreement, Christopher A. Viehbacher, Chief Executive Officer of Sanofi, said: "Our strategy is based upon our growth platforms and innovation. This divestiture allows us to rationalize 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."
"We are pleased to add another strong dermatology franchise to our growing operations in the U.S. and Canada," stated J. Michael Pearson, chairman and chief executive officer of Valeant. "Dermik's assets, both in the medical and aesthetic therapeutic areas, provide us with exciting opportunities to leverage our combined portfolios in our current markets as well as options to expand Valeant's presence to other territories. Furthermore, the manufacturing facility will provide increased capacity for our future growth initiatives in the U.S and Canada."
The closing of the transaction is subject to customary conditions, including clearance by certain antitrust authorities.