Valeant Pharmaceuticals International Inc. (VRX) said Tuesday it's acquiring from Austria's Gerot Lannach certain branded generics assets that generate the bulk of their sales in Russia.
Mississauga, Ont.-based Valeant said the assets generated net revenue of about $55 million last year. Gerot Lannach's largest product is acetylsalicylic acid, a low-dose aspirin.
Valeant said it will pay less than three times sales, and may make up to an additional $20 million in milestone payments, based upon future performance objectives.
As part of the transaction, Valeant and Gerot Lannach will enter into a strategic partnership that includes an exclusive 10-year supply agreement for the acquired products and the opportunity for Valeant to introduce additional Gerot Lannach products into Valeant territories such as its emerging markets in Southeast Asia and Latin America.
Valeant expects the transaction to boost results starting immediately.
-By Carolyn King, Dow Jones Newswires; 416-306-2100; firstname.lastname@example.org