Almirall buys Allergan's US dermatology portfolio for $650 million

Spain’s Almirall has acquired Allergan’s US dermatology portfolio in a deal worth up to $650 million. This includes an upfront cash payment of $550 million and a potential earn-out of up to $100 million payable in 2022 (based on the performance of the portfolio).

The deal comprises the brands Aczone (dapsone), Tazorac (tazarotene) and Azelex (azelaic acid) for the treatment of acne, and Cordran Tape (fludroxycortide) for dermatoses, as well as Seysara (sarecycline), a new, first in class tetracycline-derived antibiotic with anti-inflammatory properties for the treatment of moderate to severe acne vulgaris, in patients 9 years of age and older. The FDA approval of Seysara (sarecycline) is anticipated in Q4 2018.

“This is a transformational deal for Almirall,” said the company’s CEO Peter Guenter. “It will reinforce and consolidate our position in the world’s largest dermatology market and is a well-balanced portfolio of mature and growth brands with a major launch opportunity of an innovative New Chemical Entity (NCE). It is perfectly complementary to our existing platform and will be immediately accretive to our earnings. It offers us medium to long term top and bottom line growth opportunities. Moreover, it will allow for an expanded platform to launch KX2-391, which has the potential to become a new standard of care in actinic keratosis”.

In a statement the company said that it expects peak sales of Seysara to range from $150 million to $200 million.The four products already marketed generated total US sales of $70 million in the first 6 months of 2018.

“With this acquisition, Almirall consolidates and reinforces its presence in the US, the largest market in the world, and expands its range of dermatological products, representing a transformational step for Almirall US as well as Almirall as a whole,” the company added. “Our global and US leadership team is comprised of several former Allergan senior executives with a deep knowledge of the acquired product portfolio.”