The bidders for German medical patch maker LTS Lohmann have been narrowed down to buyout firms Wendel and Nordic Capital. 

If successful, the deal would value the company at about EUR1.2 billion (USD1.6 billion), sources told Reuters. 

In a report, Reuters said that Sweden's Nordic Capital may be looking to combine LTS Lohmann with Acino Holding AG. Acino is another skin patch manufacturer it bought last month. Nordic had teamed up with Avista Capital Partners to acquire the Swiss drug maker, which manufactured a contraceptive patch for Bayer.  

Sources said that Japanese company Hisamitsu Pharmaceutical and private equity firm EQT were no longer being considered as suitors by LTS Lohmann's owners. Meanwhile, investment firms Blackstone Group and KKR & Co have also dropped out of the bidding, the report said. 

According to Reuters, LTS Lohmann makes about EUR286 million in annual sales from nicotine and other medical patches. Their products are used to treat conditions such as Parkinson's and Restless Legs Syndrome. 

LTS Lohmann developed the first nicotine patch for the US market. It is jointly owned by Swiss multinational Novartis, German billionaire Dietmar Hopp and investment company BWK, Reuters said.