Mylan, Lupin Said to Weigh Bids for Bayer Dermatology Unitby , , and
Other drugmakers joining fray said to be Leo, Cadila, Torrent
Non-binding bids are said to be due as soon as this week
Leo Pharma A/S, Cadila Healthcare Ltd. and Torrent Pharmaceuticals Ltd. are also weighing offers, the people said, asking not to be identified because the deliberations are private. Non-binding bids for Bayer’s dermatology unit, which could fetch more than 1 billion euros ($1.1 billion), may be due as soon as this week, the people said. No final decisions have been made, and the companies may decide against making an offer, they said.
Bayer’s assets, which include Desonate for eczema and Finacea for rosacea, are drawing interest from a wide range of drug companies and private equity bidders as dermatology treatments prove popular targets for buyers. Leverkusen, Germany-based Bayer is seeking to raise cash as it moves forward with plans to buy Monsanto, a transaction that will make it the world’s largest producer of seeds and pesticides.
Bayer has also been considering a potential sale of its radiology business, which could be worth more than $3 billion, according to people familiar with the plans. No final decision on a disposal has been made, they said. Representatives for Bayer, Denmark’s Leo Pharma and Lupin declined to comment. Representatives for Mylan, Cadila and Torrent didn’t immediately respond to requests for comment.
Bayer shares fell 31 cents to 88.89 euros at 4:05 p.m. in Frankfurt trading.
Other pharmaceutical companies weighing bids for the business include Nestle SA’s Galderma, Almirall SA, Sun Pharmaceutical Industries Ltd., Teva Pharmaceutical Industries Ltd., Allergan Plc and Perrigo Co. as well as private-equity firms such as KKR & Co. and Bain Capital, people familiar with the matter said earlier this month. Bayer is working with JPMorgan Chase & Co. on the sale, they said at the time.
Leo Pharma agreed to buy dermatology assets from Astellas Pharma Inc. last year for 675 million euros. Mylan announced a $1 billion transaction with Renaissance Acquisition Holdings in May to buy treatments for skin conditions.