Teva Pharmaceutical Industries Ltd (NYSE:TEVA), Perrigo And Sun Pharma To Bid For Dem Unit Of Bayer

Healthcare and now agriculture giant, Bayer AG is on the lookout for potential buyers for its dermatology unit. This move is foreseen by the company to raise funds for its proposed acquisition of Monsanto Company (NYSE:MON) amounting to $66 billion. Thus far, a good line up of companies has been eyeing to acquire the dermatology unit of Bayer.

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Bayer To Sell Its Dermatology Unit

Large scale drug manufacturers, whose main focus is dermatology and skincare are planning to bid for Bayer’s dermatology unit. This list includes Almirall, Allergan Plc (NYSE:AGN), and Nestle. According to Bloomberg, other pharmaceutical companies that are also interested in the sale include that of Perrigo, Sun Pharma, and Teva Pharmaceutical Industries Ltd (NYSE:TEVA). Also, a number of companies, even those that are not pharmaceutically inclined are on the line up of possible takers. These firms include Bain Capital, Nordic Capital, Cinven, Blackstone Group LP (NYSE:BX), and KKR.

Bayer is still in its early stages of the sale, with initial offers expected to come in the next few weeks . The company is said to be working with JP Morgan on the sale. According to the watchers in the industry, the said healthcare and agriculture giant could take in as much as $1.1 billion or more with this particular transaction.

Teva, Sun, and Perrigo, Among the List of Buyers

Ever since Allergan’s generics unit was sold for $40 billion, Teva, the buyer, has been eyeing for branded acquisitions. Coincidentally, Bayer’s portfolio fits such a profile. According to CEO Erez Vigodman, his company would be looking for assets that are more in line with areas in the therapeutics where his company is already inclined, such as neurodegenerative, pain, and respiratory.

Instead of bulking up, Perrigo is being pressured by activists to slim down. Starboard Value, a new shareholder, requested to focus on Perrigo’s core OTC business. The said move is a strategy where it is anticipated to sell off royalty interest and generics assets in multiple sclerosis medication Tysabri. Reportedly, it is already working on the latter sale, wherein analysts labeled Royalty Pharma as a likely buyer.

Meanwhile, Werner Baumann, Bayer’s new CEO, is busy convincing the Monsanto deal critics that the partnership will not negatively affect the company’s pharmaceutical ambitions.

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