Tuesday, September 4, 2012

Valeant to Acquire Medicis - Dermatology acquisitions is the flavor the season


Valeant Pharmaceuticals International Inc. has agreed to buy Medicis Pharmaceutical Corp. MRX for $2.6 billion. The acquisition price is a 39% premium to the company's shares as of Friday's close. If the Medicis acquisition is completed, Valeant will have revenue of roughly $4.5 billion a year. Medicis generated $721 million in Revenue last year. The acquistion value will also set a benchmark for Taro Shareholders who are bargaining for a higher price from Sun Pharma. The deal values Medicis at approximately 3.5 times 2011 revenue. The other deal in the dermatology space in the recent past was Sandoz acquiring Fougera

Medicis, based in Scottsdale, Ariz., makes dermatological and aesthetic pharmaceutical products, including the acne treatment Solodyn and Dysport, which competes with Allergan Inc.'s