Almirall completes $550m acquisition of five dermatology brands from Allergan

In a significant move within the pharmaceutical industry, Spanish pharmaceutical company Almirall has finalised its $550 million acquisition of five dermatology medications from Allergan‘s Medical Dermatology unit in the United States. This strategic acquisition, first announced in August 2018, aims to expand Almirall’s footprint in the US dermatology market.

Acquisition Details and Financial Implications

The deal includes several established acne and dermatoses treatments: Aczone (dapsone), Tazorac (tazarotene), Cordran Tape (flurandrenolide), and Azelex (azelaic acid). Additionally, Almirall has acquired sarecycline, a novel medication currently under review by the US Food and Drug Administration (FDA) for acne treatment. Collectively, these products generated $70 million in revenue for Allergan during the first half of 2018.

As part of the agreement, Almirall has committed to a potential earn-out payment of up to $100 million to Allergan, contingent on the commercial performance of the acquired assets.

Strategic Impact on Almirall’s Dermatology Portfolio

This acquisition is expected to significantly enhance Almirall’s position in the US dermatology market through its subsidiary, Aqua Pharmaceuticals. Aqua Pharmaceuticals specialises in skin treatments for conditions such as acne, dermatitis, eczema, actinic keratoses, and bacterial infections. The addition of these products will complement Aqua Pharmaceuticals’ existing portfolio and potentially expand its market presence.

Ron Menezes, President and General Manager of Aqua Pharmaceuticals, commented on the acquisition, stating, “With this acquisition, Almirall is cementing its commitment to be a leader in medical dermatology, providing proven brands and innovative new therapies across a broad array of indications as a partner to our customers and patients. The mature products complement our existing portfolio while sarecycline could soon become one of the promising new oral therapies, which exemplifies our renewed focus on innovation.”

Aqua Pharmaceuticals plans to launch and market sarecycline for acne treatment pending regulatory approvals.

Allergan’s Strategic Moves

For Allergan, the sale of these dermatology brands is part of a broader strategy to streamline its portfolio. This month, Allergan also agreed to acquire US-based aesthetic company Bonti in a deal valued at over $195 million, indicating its continued investment in expanding its aesthetic offerings.