Valeant to Acquire Salix in $14.5B Transaction

Valeant Pharmaceuticals has entered into a definitive agreement to acquire Salix Pharmaceuticals in a transaction valued at approximately $14.5 billion. Salix has a leading gastrointestinal franchise with a portfolio of 22 products, including prescription brands Xifaxan, Uceris, Relistor, and Apriso, as well as a late stage pipeline of new assets. 
 
The combination is expected to yield greater than $500 million in annual cost savings, primarily from reductions in corporate overhead and R&D rationalization. The companies have yet to determine how best to integrate the combined businesses, but there are no planned reductions to Salix’s specialty sales forces or hospital, key account and field reimbursement teams and will determine the optimal size of Primary Care Sales Force through the integration process.
 
“Salix’s market-leading gastrointestinal franchise is an ideal strategic fit for Valeant’s diversified portfolio of specialty products,” said J. Michael Pearson , Valeant’s chairman and chief executive officer. “The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising near-term pipeline of innovative products. With strong brand recognition among specialist GI prescribers, a highly rated specialty sales force, and a significant product and commercial presence across the undertreated and underserved gastrointestinal market, this acquisition offers a compelling opportunity for Valeant to create a strong platform for growth and business development.” 
 
Thomas W. D’Alonzo, chairman of the board and acting chief executive officer of Salix, stated, “We are pleased to have reached an agreement with Valeant, which is a logical partner and importantly, creates immediate value for our shareholders. Combining Salix’s leading market position in gastroenterology with Valeant’s scale and resources will create a stronger and more diverse business committed to providing better health solutions to health care providers and their patients. We are proud of the accomplishments of our Salix team. Together, we have built our company into the leading gastrointestinal specialty pharmaceutical company, providing solutions for patients and healthcare providers. We look forward to working with the Valeant team to ensure a smooth transition.”