Valeant to buy Sanofi's skin care unit Dermik for $425 million

Canada’s Valeant Pharmaceuticals International (TSX: VRX) has entered into an agreement to acquire Dermik, a dermatology unit of French drug major Sanofi (Euronext: SAN)) in the USA and Canada, as well as the worldwide rights to Sculptra Aesthetic (injectable poly-L-lactic acid).

Under the deal, Valeant will pay Sanofi around $425 million for all Dermik assets, including available inventories of about $18 million, which consist of an aesthetic and therapeutic business in the USA and Canada, as well as a widely dispersed aesthetic business around the world. The divestiture is in line with Sanofi’s plans to focus on core businesses, the French firm said.

“Our strategy is based upon our growth platforms and innovation,” declared Christopher Viehbacher, chief executive of Sanofi. “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,” he explained.