Swiss drug firm to buy Newtown's CollaGenex

CollaGenex Pharmaceuticals Inc. , a small Bucks County focused on the dermatology market, agreed to be acquired by a Swiss specialty drug maker in a deal valued at about $420 million.

Galderma Pharma S.A. will pay $16.60 per share in cash for all of the shares of CollaGenex, which sells Oracea, a treatment for rosacea. Galderma also makes a topical product to treat rosacea.

CollaGenex shares closed Monday at $12.80 per share, up 17 cents.

The transaction is structured as a tender offer and is expected to close before the end of June. After completion, CollaGenex would become a subsidiary of Galderma.

But it's not clear from the news release issued what will become of the Newtown operations. Here's what CollaGenex president and CEO Colin W. Stewart says:

We are very proud of the accomplishments of the entire CollaGenex team over the past several years as we made our successful transition into dermatology and created the largest oral drug indicated for the treatment of rosacea in the U.S. We are pleased that Galderma recognizes the value that we have created, and we believe that this transaction provides compelling value for our shareholders.