French pharmaceutical company Sanofi has agreed to sell its dermatology unit Dermik to Valeant Pharmaceuticals International of Canada for US$425m.
Dermik, the manufacturer of acne drug Benzaclina and facial injectable Sculptra for the correction of facial wrinkles, has a significant presence in the medical dermatology market in the US and Canada. It is headquartered in Mississauga, Ontario.
Valeant, a specialist pharmaceutical company in the areas of neurology, dermatology and branded generics, will buy all Dermik assets, including available inventories of approximately US$18m, which consist of an aesthetic and therapeutic business in the US and Canada, as well as a widely dispersed aesthetic business around the world.
Additionally Valeant will acquire Sanofi's Laval, Canada site, which includes Dermik's manufacturing facility that currently produces approximately 70 formulations and more than 200 presentations of tablets, capsules, non-sterile liquids, ointments and creams for both Sanofi products as well as third parties.
Sanofiís Canadian affiliate, sanofi-aventis Canada, will maintain its operations in greater Montreal.
Michael Pearson, Valeantís chairman and chief executive, said the manufacturing facility will provide increased capacity for future growth initiatives in the US and Canada.
Sanofi believes Dermik will benefit from being part of a larger dermatology business.
Chief executive Christopher Viehbacher said the sale would allow Sanofi to rationalise its portfolio and improve focus on its core businesses.