Valeant Pharmaceuticals International Inc., formerly Biovail Corporation, is a Canadian specialty pharmaceutical company engaged in the application of drug-delivery technologies to improve the clinical effectiveness of medicines. Its therapeutic areas of focus are central nervous system (CNS) disorders, pain management and cardiovascular disease (including Type II diabetes).
Valeant to buy dental company OraPharma for $312 mln
Valeant Pharmaceuticals International (NYSE:VRX)() agreed to buy specialty oral health company OraPharma from Water Street Healthcare Partners in a deal valued at $312 million.
The deal, which is slated to close by June, also includes a payment of up to $114 million based on certain milestone and revenue targets.
The Mississauga, Ontario-based company, which recently announced its decision to move headquarters to Montreal, expects the transaction to be accretive this year.
"We are excited to enter a new attractive market segment with an already established sales infrastructure focused entirely on the dental community," Valeant’s chief executive Michael Pearson said in a statement.
OraPharma's lead product is Arestin, a locally administered antibiotic for the treatment of periodontitis that utilizes an advanced controlled-release delivery system and is indicated for use in conjunction with scaling and root planing for the treatment of adult periodontitis.
Periodontitis is inflammation and infection of the ligaments and bones that support the teeth.
OraPharma currently has the largest specialized pharmaceutical salesforce in the dental industry. As of March 31, OraPharma’s 12-month net revenue reached $95 million.
"We believe that this market segment has similar characteristics to the dermatology, podiatry and ophthalmology markets and should offer us the opportunity to cross-sell some of our current products, most notably our new topical prescription cold sore medication, Xerese."
Valeant’s share price closed at $45.95 Thursday on the New York Stock Exchange.
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