Canada’s Valeant to acquire Medicis Pharmaceutical for $2.6 bn

Canadian specialty pharmaceutical company Valeant Pharmaceuticals International Inc yesterday said it will buy Medicis Pharmaceutical Corp for $2.6 billion in cash, in order to expand its Botox and other skin care drugs portfolio.

The proposed deal would Valeant's largest since it was created through the 2010 merger with Canada's Biovail Corp.

Valeant, based in Ontario, is offering $44 per share, a 39 per cent premium to Medicis closing price of $31.56 on 31 August on the New York Stock Exchange.

Medicis, which has a market value of $1.89 billion, is an independent specialty pharmaceutical company focusing primarily on the treatment of dermatological and aesthetic conditions.

The Scottsdale, Arizona-based company has leading branded prescription products in a number of therapeutic and aesthetic categories, including Solodyn, for acne treatment, and Dysport, an injection that rivals Allergan Inc's Botox.

Medicis' portfolio of other prescription brands includes Restylane, Perlane, Ziana, and Zyclara.