LEO Pharma to acquire global dermatology portfolio from Astellas

Astellas has reached an agreement to transfer its global dermatology business to LEO Pharma for €675 million.

Under the terms of the agreement, the assets and associated responsibilities relating to Astellas’ global portfolio of dermatology products including Protopic and other products for the treatments of acne and skin infections, predominantly sold in the EMEA region, will be transferred to LEO Pharma.

The closing of this transaction is anticipated in the first quarter of 2016. Following the closing, Astellas has said that it will work closely with LEO Pharma to ensure a smooth and effective transition of the products and business to LEO Pharma. Astellas is still reviewing the impact of this transaction on its financial forecasts for the fiscal year ending 31 March 2016.

Yoshihiko Hatanaka, President and CEO of Astellas commented, “Astellas continuously considers its strategy and as a result, we reached this decision. We feel that dermatology patients around the world will be better served by transferring these products to LEO Pharma, a company with a strong focus on the dermatology therapeutic area. This transaction will allow us to re-allocate resources to activities that drive our competitive advantage. We are pleased to work with LEO Pharma to ensure smooth continuation of product supply around the world.”

A historic milestone for LEO Pharma

The transaction will be the largest in LEO Pharma’s more than 100-year history in terms of incremental turnover. Its turnover is estimated to increase by more than 20% once the portfolio is fully transferred. With the agreement, LEO Pharma creates a strong foothold in markets such as China and Russia and adds critical scale in many other markets.

Gitte Aabo, CEO and President of LEO Pharma, added, “This is a historic milestone for LEO Pharma and will be instrumental in our efforts to help even more people living with skin diseases. We are excited about this opportunity and are looking forward to be working closely with Astellas on a seamless transfer of the portfolio. With our expanded portfolio, we will be able to offer patients an even wider range of treatment solutions to meet their individual needs. For LEO Pharma, leading in dermatology care is about making a real difference to people’s everyday lives. ”