Stiefel Laboratories will acquire Barrier Therapeutics for approximately $148 million. The parties expect the transaction to close by the end of the third quarter of 2008.

“This acquisition demonstrates our continued commitment to advancing the field of therapeutic dermatology,” said Charles W. Stiefel, chairman and chief executive officer of Stiefel Laboratories. “We are very impressed with Barrier Therapeutics’ innovative products and pipeline. This strategic move will further expand our oral and topical product portfolio in development and increase our sales of novel treatments for skin conditions.”

“We are very proud of the accomplishments of the entire Barrier Therapeutics team since we were founded in 2002, and we are pleased that Stiefel Laboratories recognizes the value that we have created,” said Al Altomari, chief executive officer of Barrier Therapeutics. “We believe this transaction provides substantial value to our stockholders. We believe Barrier Therapeutics’ product portfolio and innovative R&D pipeline candidates are among the greatest assets in dermatology and will strengthen Stiefel Laboratories’ position in the global dermatology market.”

Barrier’s board has approved the merger agreement and will recommend that company stockholders tender their shares in connection with Stiefel’s tender offer.