Bayer Exploring Sale of Non-Core Dermatology Business

09 Sep 2016 --- Bayer is considering the sale of its dermatology business, as it looks to sell non-core assets to focus on its deal to acquire Monsanto.

The sale of the German company's dermatology business could be sold for more than $1.1bn, according to a report by Bloomberg.

Bayer's dermatology brands include eczma brand Avantan and baby skin brand Bepanthen. 

The report suggests that the proposed sale is at an early stage and might not lead to a disposal of the dermatology business.

Should the deal go through, it could help shore up the finances of Bayer should it seal its $65bn deal to buy Monsanto.

Bayer is working with JPMorgan Chase & Co on the proposed sale, according to the report.

Possible buyers of the business could include Nestlé-owned skincare business Galderma and the Irish pharmaceutical company Allergan.

Spokespeople for Bayer and JPMorgan declined to comment.

The possible sale comes as Bayer looks to push through a deal to acquire Monsanto.

Earlier this week Bayer said it was in "advanced" talks to buy Monsanto and was willing to increase its offer to more than $65bn as it looks to seal a deal which would create the world's biggest agrochemical company. 

The German crops and pharmaceutical company said it would now be prepared to offer $127.50 a share, up from the $125 a share offer rejected by Monsanto in July, although it said there was "no assurance that the parties will enter into agreement".

Bayer said that "key terms and conditions have not yet been agreed" but by sweetening its offer for the second time it clearly believes a deal for the US maker of genetically modified crops is in sight.