Allergan PLC has agreed to sell five of its dermatology products to Spanish drugmaker Almirall SA in a deal worth up to $650 million, the European company announced Friday.
If the deal clears regulators, Almirall will add the dermatoses treatment Cordran Tape and the acne treatments Aczone, Tazorac and Azelex to its portfolio. The deal would also give Almirall the rights to a new acne medication, Seysara, which the drugmaker said should be approved by the U.S. Food and Drug Administration by the end of the year.
“This is a transformational deal for Almirall,” CEO Peter Guenter said in a statement. “It will reinforce and consolidate our position in the world’s largest dermatology market.”
Allergan didn’t immediately respond to a request for comment Friday.
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Under the terms, Almirall would pay Allergan $550 million cash at the deal’s close. According to reports, there’s an option for another $100 million in 2022 based on the performance of the portfolio.
The four products already on the market brought in $70 million in the first half of 2018, Almirall said. A review of Allergan’s U.S. Securities and Exchange Commission filings show that Aczone brought in $37.3 million during that time period, and Tazorac $30.2 million. Neither drug reached the company’s top 20 best-sellers. Sales for Azelex and Cordran Tape were not specifically listed.
Seysara is an “innovative first in class” antibiotic to treat moderate to severe acne, Almirall said. Bhushan Hardas, who is Almirall’s vice-president of research and development and chief scientific officer, said in the statement that, if approved, Seysara will be “the first oral antibiotic in 40 years, specifically designed for dermatology,” that can safely and effectively treat acne.
The added revenue will help Almirall launch its actinic keratosis treatment KX2-391, the company said. The drugmaker had announced in December that it was teaming up with Athenex Inc. to work on that skin condition treatment.
Almirall is publicly traded in Spain, but it’s upping its presence in the United States. On the U.S. market, Almirall sells the chronic obstructive pulmonary disease treatment Tudorza Pressair alongside AstraZeneca, and the migraine medication Axert alongside Janssen Pharmaceuticals Inc. It also sells a wide range of products elsewhere across the world.
Almirall said it doesn’t expect the deal to face “any significant obstacles” for regulatory approval and that the transaction should close by the end of the year.
“[It’s a] strategic and straightforward transaction in one single geography,” the company said.
Date: August 6, 2018
Source: law360
