Mylan, Lupin, others now in the mix for $1.1B Bayer derm buy

Bayer logo and dark clouds

The list of drugmakers reportedly eying Bayer’s up-for-sale dermatology unit is growing even longer.

Mylan ($MYL), New Jersey’s Leo Pharma and India’s Lupin, Cadila Healthcare and Torrent Pharmaceuticals are all weighing offers for the unit, which could bring in more than $1.1 billion for the German drugmaker as it looks to fund the $66 billion Monsanto acquisition it recently agreed to, Bloomberg reports.

Previous reports listed Nestle’s Galderma, Spain’s Almirall, India’s Sun Pharma, Teva ($TEVA), Allergan ($AGN) and Perrigo ($PRGO) as potential suitors on the pharma side, while private equity firms such as KKR and Bain Capital have featured in the rumors, too.

The companies may not have much more time to decide whether to officially jump into the fray, though. Bids may be due as soon as this week, sources told the news service.

Both Mylan and Leo have made recent deals in the dermatology space. Bayer’s portolio--which includes eczema therapy Desonate and rosacea treatment Finacea--could bolster the €675 million worth of skincare assets Leo Pharma agreed last year to to buy from Japan’s Astellas, or those Mylan in May announced it would be buying with a $1 billion deal for Renaissance Acquisition Holdings.

Meanwhile, dermatology may not be the only divestment Bayer’s looking into. It’s also considering a potential divestment of its radiology business, which could fetch more than $3 billion, Bloomberg’s sources say.

Earlier this year, Sanford Bernstein analyst Jeremy Redenius suggested that a long-buzzed-about animal health sale could help Bayer drum up funds for the Monsanto ($MON) buy, too.

- get more from Bloomberg

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