BRIEF— Karo Pharma acquires product portfolio from LEO Pharma

Adding to a previous deal on dermatological products, Swedish firm Karo Pharma has now acquired a focused intimate care and dermatology product portfolio from privately-held Danish firm LEO Pharma for 90 million euros ($99.8 million).

The turnover of the acquired portfolio is estimated to 35 million euros for the full year of 2019. Approximately 2/3 of the turnover comes from European markets.

The portfolio consists of four anti-hemorrhoid products (Sheriproct, Doloproct, Neriproct and Ultraproct) and six dermatology products (Ultrabas, Ultralip, Ultraphil, Ultrasicc, Neribas and Ultralan).

The anti-hemorrhoid product group constitutes the largest part of the portfolio, contributing with ca. 85% of the acquired portfolio's net sales.

The acquisition is a pure asset deal, no personnel or manufacturing sites are included in the agreement.

The portfolio contains a specific product, Neriproct, which is exclusively marketed in the Japanese market and accounts for ~15% of the estimated full year 2019 turnover.

Karo Pharma will look into a divestment of Neriproct as Japan falls outside of Karo Pharma's geographical focus area.

This follows a general principle of exploring strategic alternatives for assets that are not core to Karo Pharma's strategy.