Valeant Pharmaceuticals raises offer for opthalmic drugs maker ISTA

Canada's specialty pharmaceutical company, Valeant Pharmaceuticals International Inc yesterday raised its unsolicited takeover offer for opthalmic drugs maker ISTA Pharmaceuticals Inc to $7.50 per share and set a target price of $8.50 per share in cash.

Ontario-based Valeant had on 16 December offered to buy ISTA for $6.50 per share in cash, subject to due diligence, valuing the third-largest branded prescription eye care company in the US at $314 million.

The offer represented a premium of 67 per cent over ISTA's closing price of $3.89 on 15 December 2011.

The deal was rejected by ISTA as being grossly inadequate and said that its board does not believe that pursuing the non-binding proposal is in the best interests of its shareholders.

ISTA yesterday said that it would consider Valeant's updated proposal as part of its ongoing review of strategic options but added that it is currently in dialogue with a number of parties that have expressed an interest in pursuing a strategic transaction.

Vicente Anido, Jr, Ph D, president and CEO of ISTA, said, ''We have invited Valeant, along with a number of other parties, to participate in our process. We view Valeant's willingness to raise its bid at least $2.00 per share as a clear indication of the inadequacy of its initial proposal. Valeant has and continues to be offered the same confidentiality agreement, with no standstill provision, as all the other participants in our process and is subject to the same timeline.''