Switzerland's Galderma in $420 million deal to acquire CollaGenex Pharma

Swiss dermatological pharmaceutical specialty group Galderma Pharma says it has entered into a definitive agreement to acquire Pennsylvania, USA-based CollaGenex, via its US subsidiary Galderma Laboratories. Under the terms of the accord, the Swiss firm will pay $16.50 per share in cash, which represents a total purchase price of around $420.0 million. News of the deal saw Nasdaq-listed CollaGenex' share price rocket more than 28% to $16.40 in premarket trading the day after it was announced, on February 25.

Commenting on the reason for the transaction, Galderma's chief executive, Humberto Antunes, said: "CollaGenex' innovative products complement and enhance Galderma's portfolio. We admire the accomplishments of CollaGenex' employees and believe our combined organizations will be even better positioned to serve patient's needs. This transaction should be neutral to Galderma's net income in 2008 and accretive as of 2009."

CollaGenex launched Oracea (doxycline 40mg, of which 30mg is immediate release and 10mg delayed release beads), the first US Food and Drug Administration-approved systemic product indicated for the treatment of rosacea, in July 2006. The firm is also developing Col-118, an innovative product for the treatment of the erythema associated with rosacea. If approved, this agent which is now in Phase II clinical evaluation, would be the first effective treatment for erythema. In addition, the company is developing a product with the potential to provide added benefits for the treatment of psoriasis.