Valeant Pharmaceuticals has agreed to buy Medicis Pharmaceutical in a deal valued at about $2.6 billion. The transaction is expected to close in the first half of 2013.
Montreal - Valeant Pharmaceuticals has agreed to buy Medicis Pharmaceutical in a deal valued at about $2.6 billion. The transaction is expected to close in the first half of 2013.
The deal is worth $44 per share in cash, and the overall total for the transaction reflects a 39 percent premium for Medicis’ closing share price at the end of August, according to a company news release.
Valeant projects that its net revenue for combining aesthetic and dermatology businesses with Medicis will be about $1.7 billion in the United States. Medicis’ product line includes Restylane (hyaluronic acid/HA), Perlane (HA), Dysport (abobotulintumtoxinA) and Zyclara (imiquimod cream 3.75 percent).
“Medicis’ highly complementary portfolio of leading branded products and promising pipeline is a solid strategic fit, and we look forward to leveraging Medicis’ well-known and respected name in dermatology to drive long-term growth,” said Valeant chairman and CEO J. Michael Pearson, in a company statement.
The boards of directors of both companies have approved the transaction. The deal is subject to customary closing conditions, including approval by Medicis stockholders. The company, once combined, will run its commercial dermatology operations out of Scottsdale, Ariz., and will operate under the name Medicis, a division of Valeant.
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