Mylan to buy Renaissance skin care unit for $950mn

Mylan will buy Renaissance's skin care unit for $950 million, expanding its holdings in a key area.

Reuters reports:

The deal comes three months after Mylan said it would acquire Swedish drugmaker Meda, which also has a sizeable dermatology business. Dermatology and topical drugs have long been an area of focus for Mylan, Chief Executive Heather Bresch said in a statement on Friday. The Renaissance business is complementary to Meda's, she said. The deal will add about 25 branded and generic non-sterile topical products, the company said. Renaissance, majority owned by private equity firm RoundTable Healthcare Partners, will retain its sterile-focused businesses and associated manufacturing facility. The deal, which is expected to close by the end of the third quarter, includes additional contingent payment of up to $50 million. The unit generated revenue of about $370 million in 2015 and employed about 1,200, Mylan said.

Bloomberg writes:

The acquisition will not affect Mylan’s projected debt ratio, because the financing was accounted for, Bresch said in the statement.

The Street notes:

"This is an area they've been trying to get into for a couple of years," an analyst said in a phone interview. "It's a market with limited competition, high margins, few players and where there's been tremendous asset repricing." Perrigo, a generics drugmaker based in Ireland, was initially the apple of Mylan's eye. The company offered $29 billion for the generics drugmaker in April 2015, but was beaten out by Teva Pharmaceuticals, who paid $40.5 billion in the deal.