Bayer’s Dermatology Unit Sale Said to Attract Teva and Perrigo

  • Buyout firms including Nordic, KKR, Bain may also weigh bids
  • Initial offers for the assets are due in the coming weeks

Bayer AG’s dermatology unit is attracting interest from a number of health-care and private equity firms as the German company seeks to raise cash for its $66 billion acquisition of Monsanto Co., according to people with knowledge of the matter.

Teva Pharmaceutical Industries Ltd., Perrigo Co. and Sun Pharmaceutical Industries Ltd. are among companies considering offers, said the people, who asked not to be named because the deliberations are private. Buyout firms including KKR & Co., Nordic Capital, Bain Capital, Blackstone Group LP and Cinven Ltd. may also look at the asset, the people said.

Initial offers are due in the coming weeks, the people said. The discussions are at an early stage and no final decisions have been made, they said. Bayer is working with JPMorgan Chase & Co. on the sale, which could fetch more than 1 billion euros ($1.1 billion), people familiar with the process said earlier this month.

Dermatology assets like Bayer’s, whose products include the eczema treatment Desonate and Finacea for rosacea, are proving popular with buyers even as data compiled by Bloomberg shows total spending on drugmakers declined in the last 12 months. Companies including Allergan Plc and Spain’s Almirall SA have all invested in dermatology businesses in the past year.

Allergan and Almirall, along with Nestle SA’s Galderma, are also considering bids for Bayer’s assets, people familiar with the talks said previously. Representatives for those companies as well as Bayer, Teva, Perrigo, Sun Pharmaceutical, Nordic Capital, Blackstone Group, Cinven and Bain declined to comment Tuesday. A spokesman for KKR didn’t have an immediate comment.

On Sept. 14, Bayer agreed to buy Monsanto, winding up four months of talks to create the world’s biggest supplier of seeds and pesticides. Bayer will fund the transaction with a combination of debt and equity.

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