Novartis has signed a definitive agreement to acquire specialty dermatology generics company Fougera Pharmaceuticals.
Under the terms of the agreement, Novartis will acquire the business, which is based in Melville, New York, for $1.525bn (£927m) in an all-cash transaction.
The sellers are comprised of a consortium of private equity funds led by Nordic Capital, DLJ Merchant Banking (a Credit Suisse affiliate) and Avista Capital Partners.
In a statement, Novartis said the acquisition creates another strong global growth platform for Sandoz, its generic pharmaceuticals division.
Based on 2011 IMS data, the combined businesses will become the leading global company in generic dermatology medicines, with estimated annual global sales of nearly $620m, primarily in the US.
Fougera is said to have strong dermatology development and manufacturing expertise, with launches planned for 2012 and beyond.