Valeant Pharma acquires Medicis for US $2.6 billion

Hannah Blake

pharmaphorum

Valeant Pharmaceuticals International, Inc. has entered into a definitive agreement with Medicis Pharmaceutical Corporation, under which Canadian drugmaker Valeant will acquire the outstanding common stock of Medicis. Medicis’ common stock is valued at approximately US $2.6 billion.

This combination will create a new global leader in dermatology. Medicis’ current portfolio is made up of leading prescription brands in dermatology and skincare, including Solodyn (minocycline), dermal fillers Restylane and Perlane, wrinkle treatment Dysport and Zyclara (imiquimod cream), a medication to treat multiple actinic keratoses (AK).

The pro forma net revenue for the combined company's dermatology and aesthetics businesses for 2012 is expected to exceed US $1.7 billion within the United States.

"The acquisition of Medicis represents a significant next step in our journey to become the leader in dermatology by strengthening Valeant's presence in acne, actinic keratosis, aesthetic injectables and anti-virals, among others. 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."

Valeant's Chairman and Chief Executive Officer, J. Michael Pearson.

The transaction is expected to close in the first half of 2013, subject to customary closing conditions.