LEO Pharma to Acquire Global Dermatology Portfolio from Astellas

PR62531

BALLERUP, Denmark, Nov. 11, 2015 /PRNewswire=KYODO JBN/ --

     LEO Pharma A/S, a global healthcare company dedicated to helping people

achieve healthy skin, and Japanese pharmaceutical company Astellas Pharma Inc.

today announced that they have entered into an Asset Purchase Agreement under

which Astellas will transfer its global dermatology business to LEO Pharma for

EUR 675 million.

     (Logo: http://photos.prnewswire.com/prnh/20130221/595427 )

    Under the terms of the agreement, the assets and associated

responsibilities relating to Astellas' global portfolio of dermatology products

- which include Protopic(R), treatment for eczema, and other products for the

treatment of acne and skin infection - will be transferred to LEO Pharma

(except for Protopic(R) in Japan[1] ).

    The addition of Astellas' dermatology products will extend LEO Pharma's

reach to millions more people living with skin diseases.

    LEO Pharma's recent years of strengthening its global presence has created

a strong foundation for the integration of global activities such as the

dermatology portfolio from Astellas. The acquisition is a pivotal step on LEO

Pharma's further growth journey to become the preferred dermatology care

partner in the world.

    The transaction will be the largest in LEO Pharma's more than 100-year

history in terms of incremental turnover. Annual turnover is estimated to

increase by more than 20% once the portfolio is fully transferred. With the

agreement, LEO Pharma creates a strong foothold in markets such as China and

Russia and adds critical scale in many other markets.

    Today's announcement demonstrates LEO Pharma's commitment to its 2020

strategy. Internal innovation together with growth through acquisitions and

partnerships serves to strengthen the company's global position as a preferred

partner in dermatology.

    "This is a historic milestone for LEO Pharma and will be instrumental in

our efforts to help even more people living with skin diseases. We are excited

about this opportunity and look forward to working closely with Astellas to

ensure a seamless transfer of the portfolio," said Gitte Aabo, CEO and

President of LEO Pharma. "With our expanded portfolio,  we will be able to

offer patients an even wider range of treatment solutions to meet their

individual needs. For LEO Pharma, leading in dermatology care is about making a

real difference to people's everyday lives."

    The Astellas dermatology portfolio comprises prescription and

over-the-counter products, including established and strong brands such as

Protopic(R) for eczema, Locoid(R)  and Locobase(R) for skin care and Zineryt(R)

for acne.

    Yoshihiko Hatanaka, President and CEO of Astellas commented, "Astellas

continuously considers its strategy and as a result, we reached this decision.

We feel that dermatology patients around the world will be better served by

transferring these products to LEO Pharma, a company with a strong focus on the

dermatology therapeutic area. We are pleased to work with LEO Pharma to ensure

smooth continuation of product supply around the world."

    The transaction is subject to the satisfaction of customary closing

conditions, including review and approval by competition authorities. The

closing of this transaction is anticipated in the first quarter of 2016.

    Following the closing, Astellas and LEO Pharma will work closely together

to ensure a smooth and effective transition of the products and business to LEO

Pharma. The transaction does not include any manufacturing facilities.

    J.P. Morgan is acting as financial advisor, Kromann Reumert as legal

advisor and PricewaterhouseCoopers as financial and tax due diligence adviser

to LEO Pharma.

    Note:

    1) Not including Protopic(R) in Japan. Distribution rights for Protopic(R)

are assigned to Maruho Co. Ltd.

    About LEO Pharma

    LEO Pharma helps people achieve healthy skin. By offering care solutions to

patients in more than 100 countries globally, the company supports people in

managing their skin conditions. Founded in 1908 and owned by the LEO

Foundation, LEO Pharma has devoted decades of research and development to

delivering products and solutions to people suffering from skin diseases. LEO

Pharma is headquartered in Denmark and employs around 4,800 people worldwide.

For more information, visit http://www.leo-pharma.com.

    Subscribe to our YouTube channel: http://www.youtube.com/leopharmaglobal

Follow us on Twitter: http://www.twitter.com/leohealthyskin Visit us at

LinkedIn: http://www.linkedin.com/company/leo-pharma

    About Astellas

    Astellas Pharma Inc., based in Tokyo, Japan, is a company dedicated to

improving the health of people around the world through the provision of

innovative and reliable pharmaceutical products. We focus on Urology, Oncology,

Immunology, Nephrology and Neuroscience as prioritized therapeutic areas while

advancing new therapeutic areas and discovery research leveraging new

technologies/modalities. We are also creating new value by combining internal

capabilities and external expertise in the medical/healthcare business.

Astellas is on the forefront of healthcare change to turn innovative science

into value for patients. For more information, visit http://www.astellas.com/en.

     Global media contact

     LEO Pharma A/S

     Maia Fredtoft Sochting,

     Corporate Communications

     Phone: +45-3119-3559

     E-Mail: maia.sochting@leo-pharma.com

Source: LEO Pharma A/S