Sanofi sells dermatology unit for $425m
pharmafile | July 11, 2011 | News story | Manufacturing and Production, Sales and Marketing | Canada, Dermik, Sanofi, Valeant, dermatology
Sanofi has sold its Canadian dermatology unit Dermik for $425 million in order to concentrate on key growth areas like diabetes and vaccines.
The deal with Valeant Pharmaceuticals includes Dermik’s aesthetic and therapeutic business, which last year brought in $206 million, and a manufacturing facility in Laval near Montreal.
The Laval site is also currently home to the headquarters of Sanofi’s Canadian affiliate, which the company said would continue to operate from the greater Montreal area once Dermik is sold.
Christopher Viehbacher, chief Executive of Sanofi, said: “Our strategy is based upon our growth platforms and innovation. This divestiture allows us to rationalise 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.”
Sanofi describes its seven ‘growth platforms’ as diabetes solutions, human vaccines, innovative drugs, rare diseases, consumer healthcare, emerging markets and animal health.
Dermik has a significant presence in the medical dermatology market in the US and Canada with a strong field force and brands that include acne treatment BenzaClin, Carac for keratoses and facial wrinkle injection Sculptra.
The company employs around 140 people in its US dermatology division and another 200 at Laval in Canada.
J. Michael Pearson, chairman and chief executive of Ontario-based Valeant, said: “We are pleased to add another strong dermatology franchise to our growing operations in the US and Canada.
“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 US and Canada.”
The manufacturing facility currently produces approximately 70 formulations and over 200 presentations of tablets, capsules, non-sterile liquids, ointments and creams for third parties as well as Sanofi.
Dominic Tyer
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