Ranbaxy Augments Dermatology Line With U.S. Purchase Of Brands From Bristol-Myers Squibb
Ranbaxy has acquired the U.S. rights to a group of 13 branded dermatology products from Bristol-Myers Squibb, the Indian firm announced May 28. Bristol retains ex-U.S. rights to the products.
The acquisition is expected to "strengthen and extend" Ranbaxy's franchise in the dermatology market, which is led by its branded generic Sotret (isotretinoin), which it has marketed since 2003 for the treatment of severe recalcitrant nodular acne.
In addition to acne, the acquired products have been established for more than 10 years in the treatment of dermatitis, psoriasis, fungal infections and scabies. The company believes it can boost their sales through active promotion.
The 13 acquired products are Eurax (crotamiton), Exelderm (sulconazole nitrate), Halog (halcinonide), Kenalog (sulconazole nitrate), Lac-Hydrin (ammonium lactate), Ultravate (halobetasol propionate) and Westcort (hydrocortisone valerate) and consumer branded products Lowila, Balnetar, Desquam-E and -X, Pernox and Sebulex.
The products' total 2006 sales were roughly $11 million, Bristol said. Terms of the deal were not disclosed.
Ranbaxy's U.S. subsidiary began to focus on the sale and distribution of branded pharmaceuticals five years ago, while its Gurgaon, India-based parent firm centers its business on producing generics and novel drug delivery systems, as well as a growing interest in innovation research.
"We are looking for strategic fits to expand our branded division," the firm told "The Pink Sheet" DAILY." In addition to Sotret, the firm has two other branded products, one for diabetes and another in the gastrointestinal area.
In a recent interview, Ranbaxy VP-Global Strategy and Development Shyam Bishen said Indian companies are "flush with cash" and would like to increase investment in "proprietary" drug development through mergers and acquisitions ("The Pink Sheet" DAILY, Nov. 22, 2006).
The acquisition presents "significant synergy" and "underscores our strategy of pursuing inorganic growth opportunities to complement internal growth," North America VP and Regional Director Venkat Krishnan said.
Sotret became the largest selling brand in its category with a 36 percent market share during the first quarter of 2007, compared with 22 percent in the corresponding prior-year quarter, according to Ranbaxy's report for the quarter, which ended March 31. The firm cites IMS data stating the 30 mg strength has captured a 65 percent prescriptions market share in its represented category.
The U.S. dermatology market is estimated at $10 billion and has experienced a growth rate of 10 percent per year, according to Ranbaxy.
-Pamela Taulbee
This article is reprinted from "The Pink Sheet" DAILY – May 30, 2007
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