Moberg Buys OTC Brand Balmex From Sanofi

Sweden's Moberg Pharma has acquired US over-the-counter drugmaker Balmex from Chattem, the US consumer healthcare division of French pharmaceutical producer Sanofi, for $3.9 million in cash.

The acquisition sum is roughly in line with the more than $4 million annual sales of the OTC specialist, whose portfolio includes products used for diaper rash. The brand will be sold through Moberg's current OTC channel in the US, primarily in chain drugstores, as well as hypermarket chain Walmart and at specialty toy retailers.

"Adding Balmex to Moberg Pharma's US portfolio is a great fit, within our core area of topical dermatology," said Moberg CEO Peter Wolpert.

He said the company is "continuously evaluating opportunities to further leverage its US sales and marketing infrastructure," and this deal contributes immediately to sales and earnings as well as the long-term financial goal of delivering profitable growth and an EBITDA margin of 25% from 2016.