J&J, GSK, Novartis eye world's top dermatologist Stiefel

21 March 2009

After  a spate of recent mega mergers in the pharmaceutical sector, global drug giants are now eying smaller rivals to enhance their product variants and expand their operations.

Johnson & Johnson, Novartis and GlaxoSmithKline have evinced interest in skincare specialist Stiefel Laboratories, a large, family-owned pharmaceutical company based in Coral Gables, Florida.

The 160-year-old privately held pharmaceutical maker is the largest independent dermatology company in the world, according to its website. It is owned and operated by the Stiefel family since its inception in in 1847 – in Europe, when founder, John David Stiefel joined forces with dermatologists Ferdinand von Hebra and Paul Unna, to develop some of the world's first medicated soaps.

Stiefel specialises in dermatological products, such as anti-itch creams and acne treatments, said to be to expecting $3 billion to $4 billion, the Wall Street Journal reported yesterday.

With a variety of both prescription and over-the-counter products, Stiefel could appeal to a number of large drugmakers looking to diversify their businesses.

J&J and Novartis have long been among the world's most broad-based healthcare groups, while Glaxo's new CEO Andrew Witty has made clear he wants to expand in areas other than traditional prescription drugs. Valuations of many drugmakers have fallen over the past year in the global economic downturn, making smaller companies more attractive targets for bigger ones.