Topix Pharmaceuticals acquires natural skincare brand DERMA E

Topix Pharmaceuticals has acquired US-based DERMA E.

Founded in 1984, DERMA E offers the US market skincare products that are claimed to use natural ingredients and be clinically supported. They are also said to be suitable for vegans and are not tested on animals. Following the acquisition, the company will continue operations in Simi Valley, California.

DERMA E co-founder and CEO David Stearn said: “Topix is an ideal partner to help DERMA E not only accelerate its growth plans but also ensure that the integrity of the brand and its mission remain.

“Topix is highly regarded among dermatologists as a leader in innovative and clinically-validated skincare products and we believe several new opportunities can be opened for DERMA E as a result of this transaction.”

Topix Pharmaceuticals is supported by US-based investment firm New Mountain Capital, which first established a partnership in July 2016 to support its growth plans.

Topix Pharmaceuticals’ chairman of the board of directors and New Mountain Capital’s managing director Andre Moura said: “Topix is a leader in the dermatologist market with differentiated innovation and Food and Drug Administration (FDA) certified manufacturing capabilities.

“We look forward to supporting DERMA E and its customers with these resources and believe the partnership will create multiple new avenues of long-term growth for both DERMA E and the broader Topix business.”

American investment manager Piper Jaffray served as the exclusive financial adviser to DERMA E, while international law firm Winston & Strawn served as its legal counsel.

Lowenstein Sandler was the legal advisor for Topix Pharmaceuticals and New Mountain Capital.