Pharma BD Deal Intelligence

Novartis AG / Fougera Pharmaceuticals Inc.

2012 · Acquisition/Merger · $1.5B · Complete

WRONG BY 41 POINTS

Novartis paid $1.5B to become #1 in generic dermatology, then spent the next decade trying to sell it for less, getting caught in a price-fixing scandal, and finally giving the whole business away in the 2023 Sandoz spinoff.

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The coverage arc

May 02, 2012 GlobeNewswire (Novartis/Sandoz) Bullish

Sandoz to acquire Fougera for $1.525B all-cash; Fougera 2011 net sales of $429M and EBITDA of $173M imply an 8.8x EBITDA multiple; combined entity becomes…

May 08, 2012 GaBI Online Bullish

Acquisition expected to position Sandoz as global #1 in generic dermatology with ~$620M combined annual sales; deal leverages Fougera's semi-solid formulation…

Jul 23, 2012 FiercePharma Neutral

Sandoz closed the Fougera deal in July 2012, locking in #1 generic dermatology position; FTC consent required divestiture of four topical products to preserve…

Source summaries from our enrichment pipeline; follow links for originals.

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Sandoz (Novartis division) acquired Fougera Pharmaceuticals for $1.525B all-cash. Made Sandoz #1 in generic dermatology globally and in the US. Fougera 2011 net sales $429M. FTC required divestiture of 4 topical products. Sellers: Nordic Capital, DLJ Merchant Banking, Avista.

Did it work? Outcome assessment

Novartis paid $1.5B to become #1 in generic dermatology, then spent the next decade trying to sell it for less, getting caught in a price-fixing scandal, and finally giving the whole business away in the 2023 Sandoz spinoff.

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Mixed

Key facts

Related deals — scored

DealYearValueOutcome
Novartis AG / Fougera Pharmaceuticals Inc. (this deal)2012$1.5B34
Novartis AG / Advanced Accelerator Applications S.A.2017$3.9B98
Novartis AG / Endocyte, Inc.2018$2.1B96
Novartis AG / Lek Pharmaceuticals d.d.2002$876M88
Novartis AG / GlaxoSmithKline plc2014$16.0B81
Novartis AG / PTC Therapeutics Inc.2024$2.9B80
Novartis AG / Chinook Therapeutics Inc.2023$3.5B78

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