Switzerland-based Novartis has signed a definitive agreement to acquire specialty dermatology generics company Fougera Pharmaceuticals of Melville, N.Y., for $1.5 billion in cash.

The acquisition creates another strong global growth platform for Sandoz, the generic pharmaceuticals division of Novartis. Based on 2011 IMS data, the combined businesses will garner an estimated annual global sales of nearly $620 million, primarily in the U.S. Fougera has strong dermatology development and manufacturing expertise, with numerous launches planned for 2012 and beyond.

Fougera Pharmaceuticals operates two main businesses: Fougera, a player in the $2.1 billion U.S. dermatology generics sector with 45 products and more than 200 SKUs, and PharmaDerm, a branded specialty pharmaceutical business with 17 brands and over 40 SKUs.

"The addition of Fougera's leading portfolio further strengthens Sandoz's differentiated products strategy and improves our ability to help patients and customers around the world by providing easier access to high quality, affordable dermatological medicines,” said Jeff George, global head of Sandoz. “Fougera brings us valuable technical capabilities in the area of topical dermatological products, particularly in the development and manufacturing of semi-solid forms such as creams and ointments.”

Sandoz will leverage its position both in the U.S. generics sector and its presence in over 130 countries worldwide to expand Fougera's existing sales base and bring its broad dermatology portfolio to new markets around the world.

The transaction requires regulatory approvals and is expected to be completed in the second half of 2012. The transaction is expected to be accretive to core earnings per share (EPS).