Biovail Corp set to acuire Valeant Pharma in reverse merger
Date of publication: July 22, 2010
Biovail Corp are set to acquire Valeant Pharmaceuticals in a reverse merger. The deal is expected to be worth $3.3 billion and will take advantage of tax breaks to create a company that retains the Valeant name. See this illustrated on our 2010 M&A Scorecard
The combined company will now have a significantly enhanced presence in North America in addition to eight other counties. The merger will create an even stronger player in Canada, and allows Biovail to take a giant step forward and complete its transition to a new type of company.
The deal will create a company with cash flow of some $900 million and a focus on products for central nervous system disorders and dermatology as well as branded generics and speciality products.
This acquisition by Biovail follows recent announcements by Valeant Pharma that it has acquired a range of companies since December 2008.
These companies included Aton Pharma (USA), Vital Science Corporation (USA), Instituto Terapeutico Delta Ltda (Brasil), Laboratoire Dr Renaud (Canada), Emo-Farm (Poland), Tecnofarma (Mexico) , Dow Pharmaceutical Sciences (USA).
The deal value ranges of these acquisitions ranges from $10.3 million to $318 million.
In addition, Valeant has also recently announced a number of licensing and asset purchase agreements with Pharmaceutical and Speciality companies.
Together, these deal making activities demonstrate that Valeant Pharma has been proactive recently with regard to acquiring new companies and increasing their product portfolio with a view to strengthening their market share within the industry.
Tim Martin
July 2010