NEW YORK (AP) - Novartis AG's generic drug business Sandoz said it is buying dermatology drug maker Fougera Pharmaceuticals for $1.53 billion in cash.
Sandoz is the second-largest generic drug company in the world, and it said the deal will make it the largest generic dermatology product company in the U.S. market and worldwide. Fougera had $429 million in revenue in 2011, more than twice Sandoz's dermatology revenue.
Sandoz said the deal will expand its business in biotech drugs, injectable drugs, infection treatments, and ophthalmic products. It said Fougera has two businesses: the Fougera generic drug unit, and PharmaDerm, which makes brand-name specialty drugs.
Fougera is based in Melville, New York, and is owned by a group of private equity firms. It has about 700 employees.
Sandoz said the deal will close in the second half of 2012.
The deal comes one week after Watson Pharmaceuticals Inc. agreed to buy generic drug maker Actavis for $5.6 billion. That purchase is expected to make Watson the third-largest generic drug company.
Sandoz had about $10.7 billion in revenue in 2011, second only to Teva Pharmaceutical Industries Ltd., which had $13 billion.
Date: May 2, 2012
Source: Associated Press