Mylan announced on Friday it agreed to spend up to $1 billion, an initial payment of $950 million in cash followed by a contingency payment of $50 million, to acquire a slew of topical skin medications from Renaissance Acquisition Holdings, an investment fund focusing on pharmaceutical assets.
The deal gives Mylan “a portfolio of more than two dozen approved drugs and a pipeline of two dozen more, as well as a sales organization it says is tapped into the dermatology docs,” according to FiercePharma.
Reuters adds that Renaissance raked in an estimated $350 million in revenue last year. Dermatology drugs are prescribed for conditions like plaque psoriasis or fungal infections. Some of Renaissance’s assets include cold-sore ointment Denavir and the generic versions of acyclovir and Olux Foam.
Mylan’s acquisition adds to its growing dermatology business after it bought Swedish drug maker Meda February through a $7.2 billion cash and stock deal. Meda was tasked with handling European sales for EpiPen, Mylan’s emergency shot for allergic reactions and best-selling branded product, according to another Reuters report.
The market for dermatological drugs like psoriasis treatments looks promising. A recent report from research and consulting firm GlobalData said that treatments like Eli Lilly’s psoriasis treatment, Taltz, could bring in an excess of $1 billion sales by 2022.
The acquisition is expected to close by the end of the third quarter. Mylan’s shares were up by 0.91 percent in early-afternoon trading.
Filed Under: Drug Discovery
