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Pharmaceutical Takeover: Montreal-Based Valeant to Buy Arizona's Medicis

From Canadian Press DataFile (September 3, 2012)

MONTREAL -- Quebec-based Valeant Pharmaceuticals International, Inc. (TSX:VRX) is acquiring Medicis Pharmaceutical Corporation of Scottsdale, Ariz., to the tune of $2.6 billion.

The two companies issued a news release Monday announcing they’ve entered into an agreement where Valeant will acquire all of the outstanding common stock of Medicis for $44 per share in cash.

The transaction values Medicis’ common stock at about $2.6 billion.

The board of directors of both companies unanimously approved the deal, but it’s subject to approval by Medicis stockholders and expiration of any applicable regulatory waiting period.

Medicis is touted as the leading independent specialty pharmaceutical company in the United States.

It focuses primarily on the treatment of dermatological and aesthetic conditions and its brands include Solodyn, Restylane, Perlane, Ziana, Dysport and Zyclara.

"The acquisition of Medicis represents a significant next step in our journey to become the leader in dermatology," Valeant Chairman and chief executive J. Michael Pearson said in a news release. "We look forward to leveraging Medicis’ well known and respected name in dermatology to drive long-term growth."

The combined company’s commercial dermatology operations will be located in Scottsdale, Ariz., and will operate under the name Medicis, a division of Valeant, the companies said.

Valeant is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, neurology and branded generics.

Valeant is to give more details of the acquisition in a conference call Tuesday morning.

Posted: September 2012