Nestle to acquire skin care treatment rights from Valeant

US-based pharmaceutical firm Valeant Pharmaceuticals International has signed a deal with the Swiss food group Nestle to sell rights to various skin care treatments for $1.4bn.

Under the deal, the company will sell all rights to its products such as Restylane, Perlane, Emervel, Sculptra, and Dysport.

With the transaction, the food company will foray into the skincare market segment.

Nestle is expected to expects to complete its acquisition of the dermatological treatments provider Galderma in July 2014, following which it will use the bought rights to produce products through Galderma.

Galderma CEO Humberto Antunes said: "It is a clear testament to the performance of Valeant’s aesthetic commercial team that Galderma recognizes their efforts and the value of the franchise they have developed.

"Galderma has already built a strong franchise with Restylane, Perlane, Dysport and Emervel outside North America and, with the addition of Sculptra, will now have the ability bring their expertise to the US and Canada."

The acquisition is subjected to customary closing conditions, including clearance or early expiration of the waiting period under the Hart-Scott-Rodino (HSR) Act.

The move is considered to be attractive by both Valeant and Galderma, and fits together well with the former’s plans for a transaction with Allergan.