Valeant Pharma Acquires Rights for Skin Medications in U.S., Canada, Mexico
From Canadian Press DataFile (June 30, 2011)
MISSISSAUGA, Ont. -- Valeant Pharmaceuticals International Inc. (TSX:VRX) said Thursday it will pay $76 million plus additional royalties to acquire the marketing rights to skin medications Elidel and Xerese for the U.S., Canada and Mexico markets.
The Mississauga, Ont.-based company said the agreement, signed with Sweden's Meda AB, includes 18 months milestone and royalty payments amounting to about $130 million.
Further double-digit royalty payments amounting to $120 million will be paid between 2013 and 2015, which will factor in sales of Elidel and Xerese as well as royalties related to Valeant's rights for Zovirax.
Valeant bought the North American rights to anti-cold sore drug Zovirax from GlaxoSmithKline (NYSE:GSK) for $300 million in February.
The company noted that the transaction announced Thursday is expected to add to its results immediately.
Elidel is used to treat atopic dermatitis in both adults and children while Xerese is a cold sore treatment.
"The addition of a strong worldwide brand such as Elidel is a significant enhancement to our growing North American dermatology portfolio," said chairman and CEO J. Michael Pearson.
"We believe that dermatology is an attractive therapeutic area for Valeant and will continue to look for opportunities to expand our presence with dermatologists in our key markets."
Posted: June 2011