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Shire, the listed UK pharmaceutical group, is in the process of selling its tail-end dermatology business, according to sources close to the situation. The portfolio of products for sale includes two branded products: the European rights to Solaraze, the topical treatment for actinic keratosis and Vaniqa, a prescription cream used to treat unwanted facial hair.
A Shire spokesperson declined to comment.
Sources say the process was kicked off during the summer by Rothschild after Reckitt Benckiser sold its prescription dermatology business Hermal to Almirall Prodesfarma for GBP 255m. The Hermal price was equivalent to 4.4x sales and 18.2x EBIT, which one source said was a significantly rich multiple for what was largely a generic drugs business.
The source added that Shire is hoping to attract similar multiples. ”They’re jumping on the Hermal bandwagon,” the source said.
Potential buyers for the asset include Sweden’s Meda, US-listed Bradley Pharmaceuticals (which owns the US rights to Solaraze), Belgium based Omega and several generic players such as Stada and Actavis would be interested, sources said.
The Shire business makes about USD 50m in sales and is approximately 70% focused on the UK, according to one banking source.
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