Novartis to buy US generic derma company Fougera for over $1.5 billion

Further expanding its generic drug foot print, Swiss drug giant Novartis (NOVN: VX) is adding to its franchise with a definitive agreement to acquire Melville, New York, USA-based private equity-owned, specialty dermatology generics company Fougera Pharmaceuticals for $1.525 billion in an all-cash transaction.

The acquisition, announced yesterday afternoon, creates another strong global growth platform for Novartis’ generic unit Sandoz. Based on 2011 IMS data, the combined businesses will become the number one global company in generic dermatology medicines, with estimated annual global sales of nearly $620 million, primarily in the USA. Fougera has strong dermatology development and manufacturing expertise, with numerous launches planned for 2012 and beyond, said Novartis, currently ranked as Europe’s largest pharma company.

"The addition of Fougera's leading portfolio further strengthens Sandoz's differentiated products strategy and improves our ability to help patients and customers around the world by providing easier access to high quality, affordable dermatological medicines. Fougera brings us valuable technical capabilities in the area of topical dermatological products, particularly in the development and manufacturing of semi-solid forms such as creams and ointments," said Jeff George, global head of Sandoz.