Valeant to buy dermatogy firm Medicis
pharmafile | September 4, 2012 | News story | Sales and Marketing | Valeant
Speciality pharma company Valeant is to acquire dermatology-focused Medicis for $2.6 billion.
Medicis’ portfolio includes ‘cosmaceutical’ prescription brands such as Solodyn, Restylane, Perlane, and Dysport. The pro forma net revenue for the combined company’s dermatology and aesthetics businesses for 2012 is expected to exceed $1.7 billion in the US.
Valeant’s chairman and chief executive, J. Michael Pearson, said: “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.”
Jonah Shacknai, chairman and chief executive of Medicis, said: “Our Board of Directors believes this compelling all-cash transaction demonstrates the value our employees have created and the strength of our brand in the specialty pharmaceutical market. We look forward to combining our portfolio of products with Valeant, and we are confident that the combined portfolio under the Medicis name will be well positioned to capitalize on meaningful opportunities in the growing dermatology and aesthetics markets.”
Valeant says the merger is expected to yield cost synergies at an annual run rate of at least $225 million within six months of closing. Valeant has secured financing for acquisition from J.P. Morgan Chase Bank.
The combined company’s commercial dermatology operations will be located in Scottsdale, Arizona and will operate under the name Medicis, a division of Valeant, with its dermatology research and development operations in Laval, QC, Scottsdale, AZ and Petaluma, CA, and corporate support functions primarily based in New Jersey.
The acquisition follows a failed attempt last year to buy Cephalon, the company losing out to generics giant Teva and its offer in excess of $6 billion.
Valeant recently acquired OraPharma, an oral health company in June for $312 million.
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