Transformational Transaction - Almirall to acquire US medical dermatology portfolio from Allergan

Almirall entered into a definitive agreement to acquire an Allergan U.S. portfolio* of mature and growth brands for acne and dermatoses, including a new innovative NCE, SeysaraTM  (sarecycline) for the oral treatment of acne. The closing of this transaction is expected in Q4 2018

With this strategic and very focused transaction, Almirall significantly reinforces its position in the largest dermatology market in the world

All products will be distributed through our US platform and team, which has deep knowledge of the oral acne market and the acquired portfolio. They will provide critical mass to launch KX2-391, which has the potential to become the new standard of care in actinic keratosis

The acquired portfolio generated net sales of $70MM in the first half of 2018 and offers medium to long-term growth potential. We expect peak sales of SeysaraTM (sarecycline) from $150MM to $200MM

The acquisition has been announced for a cash consideration of $550MM at closing. It is immediately EPS accretive from 2019 onwards

Almirall, S.A. (ALM) has announced today the acquisition of a portfolio of five products from Allergan's Medical Dermatology unit in the United States, conditional to the clearance by the relevant authorities. It comprises a balanced portfolio of mature and growth brands, Aczone® (dapsone), Tazorac® (tazarotene), Azelex® (azelaic acid) and Cordran® Tape (fludroxycortide), as well as SeysaraTM (sarecycline), a new, innovative first in class tetracycline-derived antibiotic with anti-inflammatory properties for the treatment of moderate to severe acne vulgaris, in patients 9 years of age and older, with a best-in-class safety profile. The FDA approval of SeysaraTM (sarecycline) is anticipated in Q4 2018.

Peter Guenter, Chief Executive Officer, Almirall, commented, "This is a transformational deal for Almirall. It will reinforce and consolidate our position in the world's largest dermatology market and is a well-balanced portfolio of mature and growth brands with a major launch opportunity of an innovative New Chemical Entity (NCE). It is perfectly complementary to our existing platform and will be immediately accretive to our earnings. It offers us medium to long term top and bottom line growth opportunities. Moreover, it will allow for an expanded platform to launch KX2-391, which has the potential to become a new standard of care in actinic keratosis"