Nestlé to Bolster New Dermatology Unit With Valeant Products
28 May 2014 --- Nestlé said it will pay $1.4 billion for the rights to a handful of skin-care products from Valeant Pharmaceuticals, in a move that will bolster the Swiss food giant's newly established dermatology unit. Nestle will acquire the U.S. and Canadian commercial rights to five aesthetic dermatology products from Valeant. The U.S. and Canada represent more than half of the global market for medical aesthetics products.
On 11th February 2014, Nestlé announced it would extend its activities to include the field of specialised medical skin treatments through the creation of Nestlé Skin Health S.A., a global leader focused on meeting the world’s increasing skin health needs with a broad range of innovative and scientifically-proven products. The foundation for the company would be Galderma, the 50/50 joint venture with L’Oréal, which would become fully-owned by Nestlé. Bübchen, our existing infant skincare business would be merged into the new entity. The acquisition of Galderma is awaiting final regulatory clearance.
Today Nestlé is announcing it will reinforce Nestlé Skin Health with the acquisition from the Canadian firm Valeant Pharmaceuticals International of the full rights to commercialise several key aesthetic dermatology products in the US and Canada for USD 1.4 billion in cash. The two markets together represent more than half of the fast-growing medical aesthetics market around the world. Galderma already commercialises the products included in this transaction outside those markets.
Nestlé is acquiring the full rights to commercialise in the US and Canada Restylane, Perlane and Emervel, products used for corrective facial aesthetic treatments, and Dysport, an aesthetic dermatology treatment. It will also acquire the full rights to Sculptra, a unique treatment for aesthetic and medical uses in the US, Canada and many markets around the world.
“With this deal we have acquired key strategic assets to extend Nestlé’s activities in the field of specialised, medical skin treatments, providing consumers with life-enhancing scientific products,” said Nestlé Chairman Peter Brabeck-Letmathe.
“This move will reinforce Galderma’s leading position in the industry when it becomes Nestlé Skin Health by allowing it to complete its geographic footprint for its strong portfolio of brands and leading medical solutions globally,” said Nestlé Chief Executive Paul Bulcke.
The transaction is subject to regulatory approval and customary closing conditions.
