Denmark-based LEO Pharma has signed a definitive agreement to acquire Bayer’s global prescription dermatology unit in a bid to expand its therapeutic areas and bolster a global footprint.

Under the terms of the agreement, LEO Pharma will gain global product rights, except in Afghanistan and Pakistan. Financial terms of the transaction have not been divulged.

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The company will also obtain the associated sales and marketing entities across 14 countries, in addition to a factory located in Italy, which are expected to support its local operations.

Furthermore, the deal will see addition of approximately 450 employees to LEO Pharma.

LEO Pharma president and CEO Gitte Aabo said: “With the strong prescription dermatology brands and the new colleagues from Bayer, LEO Pharma advances significantly towards our goal of helping 125 million patients by 2025.

“We believe that LEO Pharma is the right owner to grow and further develop the prescription dermatology business.”

“We will broaden our treatment range and considerably enhance our size in key markets around the world – underlining our ambition to be a preferred partner in medical dermatology.”

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The prescription dermatology portfolio includes branded topical therapies for acne, fungal skin infections and rosacea, along with a variety of topical steroids. It is said to have generated an annual turnover of more than €280m last year.

However, the acquisition does not involve Bayer’s over-the-counter dermatology portfolio.

Bayer Consumer Health president Heiko Schipper said: “Moving forward, we believe that LEO Pharma is the right owner to grow and further develop the prescription dermatology business while enabling us to focus on building our core over-the counter brands.”

Subject to the customary closing conditions and approvals, the acquisition is set to be completed in two steps. The transaction for the US is scheduled for this year, while all other markets will be covered during the second half of next year.