Bayer Sells Dermatology Portfolio to LEO Pharma

Danish pharmaceutical company LEO Pharma has just announced their purchase of Bayer’s dermatology prescription portfolio. According to Reuters, the unit acquisition coincides with Bayer’s decision to focus on “integrating seed maker Monsanto” and strengthening their drug development system.

“Moving forward, we believe that LEO Pharma is the right owner to grow and further develop the prescription dermatology business while enabling us to focus on building our core over-the counter brands,” said Heiko Schipper, a member of Bayer’s Board of Management and president of the Consumer Health Division.

Some of the drugs include Skinoren, an acne treatment; Travogen and Travocort, fungal infection treatments; Finacea, a topical gel for rosacea; and Advantan, Nerisona, and Desonate, a series of topical steroids. Bepanthen and Canesten, a couple of Bayer’s over-the-counter skin brands, were not a part of the purchase. LEO Pharma will also take control of Bayer’s marketing and sales operations in 14 countries. The transaction is planned to close in the U.S. this year and in 2019 in other countries.  

Although financial details of the transaction haven’t been disclosed, the amount was less than the $1 billion euros Bayer hoped to receive when they started sales talks back in 2016. This might be because some of their dermatology products had lost patent protection, which could have affected their value.