DOW JONES NEWSWIRES Novartis AG (NVS, NOVN.VX) signed a definitive agreement to acquire New York-based specialty dermatology generics company Fougera Pharmaceuticals for $1.53 billion in cash from a group of private-equity funds. Fougera will become part of Sandoz, the generic pharmaceuticals division of Novartis. The sellers include Nordic Capital, DLJ Merchant Banking and Avista Capital Partners. The company said the combined businesses will become the No. 1 global company in generic dermatology medicines, with estimated annual sales of nearly $620 million. "The addition of Fougera's leading portfolio further strengthens Sandoz's differentiated products strategy and improves our ability to help patients and customers around the world by providing easier access to high quality, affordable dermatological medicines," said Jeff George, global head of Sandoz. Fougera had 2011 sales of $429 million, employs about 700 people and has 45 products. The deal is expected to add to core earnings and be financed from existing cash resources and cash flow. It requires regulatory approvals and is expected to be completed in the second half. Novartis had been named as a possible suitor in a number of bigger deals, including those for Gen-Probe Inc. (GPRO), which agreed this week to be bought for $3.7 billion by Hologic Inc. (HOLX), and Pfizer Inc.'s (PFE) animal-health division, which is thought to go for $15 billion to $20 billion. -By Lauren Pollock, Dow Jones Newswires; 212-416-2356; lauren.pollock@dowjones.com
