Specialty drugmakers, Biovail and Valeant Pharmaceuticals to merge

Specialty drugmakers, Biovail Corporation, (BVF) Canada's largest pharmaceutical company and the US-based Valeant Pharmaceuticals International (VRX), today announced that they have agreed to merge to create a specialty pharmaceuticals group, which will focus on specialty central nervous system and dermatology in Canada and branded generics in emerging markets.

Based in Ontario, BVF develops and does large scale manufacturing of oral drug and specialises in the treatment of specialty central nervous system disorders as well as other diseases like chorea associated with Huntington's disease; depressive disorder, genital herpes and others.

With 2009 revenue of $820 million, BVF also generates revenues by providing developmental research services to third parties.

California-based VRX is a multinational specialty pharmaceutical company that develops and markets prescription and non-prescription pharmaceutical products that focuses in the neurology and dermatology therapeutic areas primarily in the US, Canada, Mexico, Brazil, Australia, and Central Europe.

VRX has a portfolio of more than 500 products from its prior history as a group of speciality chemical and radiochemical research, development and supply companies that dates back to 1960, when the company was founded.

Under the terms of the deal, VRX stockholders will receive a one-time special cash dividend of $16.77 per share and 1.7809 shares of BVF common in exchange for each share of Valeant common stock they own.