Valeant Acquires Brazilian Company, New Facility

Valeant Pharmaceuticals International has signed a binding agreement to acquire a private branded generics and OTC company located in Brazil for approximately $28 million. Much of the unnamed company’s product portfolio is in dermatology; it had annual sales of approximately $19 million in 2009.

Also, Valeant will acquire a new 165,000-sq.-ft. manufacturing plant in Sao Paolo, approved to produce solids, semi-solids and liquids for approximately $28 million. Both transactions, which are subject to customary closing conditions, are expected to close in the second quarter of 2010 and will be collectively accretive to Valeant in 2010.

“We are excited to advance our dermatology presence in the Brazilian market, which is one of the leading dermatology markets worldwide,” stated J. Michael Pearson, chairman and chief executive officer. “This acquisition gets us closer to building the critical mass we need in the Brazilian pharmaceutical market. The new state of the art manufacturing plant will allow us to close our current subscale manufacturing facility and eliminates the need for any third party manufacturers — the combination of which should allow us to significantly improve margins.”