August 3, 2018 / 8:23 AM / 13 days ago

UPDATE 1-Spain's Almirall bets on dermatology with $650 mln U.S. deal

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Aug 3 (Reuters) - Spanish pharmaceutical company Almirall said on Friday it had agreed to buy five dermatology brands from U.S. company Allergan for up to $650 million in cash.

The deal will make dermatology into Almirall's main growth driver, increasing the business's net sales to nearly 45 percent of the group total from 34 percent, Almirall said.

"This is a transformational deal for Almirall. It will reinforce and consolidate our position in the world’s largest dermatology market.", Almirall chief executive Peter Guenter said.

The portfolio includes four already marketed acne products and a new brand Seysara which is pending an FDA approval.

Almirall expects Seysara to generate sales up to $200 million at its peak.

Almirall said it would pay $550 million in cash upfront and up to $100 million in an "earn-out" based on the brands' performance.

The skin-health focused company said the purchase would add to its earnings from 2019 onwards as it expects to close the deal by the fourth quarter of 2018.

Reporting by Katarzyna Zajaczkowska in Gdynia; editing by Jason Neely and Jane Merriman

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