VRX and Gladerma Ink Revised Deal - Analyst Blog
December 06 2012 - 8:15AM
Zacks
Valeant Pharmaceuticals
International, Inc. (VRX) recently announced that it has
inked a revised North American aesthetics deal with Galderma
S.A.
According to the terms of the modified deal, Galderma will continue
to be responsible for supplying dermal filler products Restylane
and Perlane to Valeant Pharma. Gladerma will supply these drugs to
Valeant Pharma under the same terms and conditions under which the
former currently supplies the drugs to Medicis
Pharmaceutical Corporation (MRX).
We note that in September 2012,
Valeant Pharma announced that it has inked a deal with Medicis
Pharma, a specialty pharmaceutical company, to acquire the latter
for $44.00 per share in cash. The deal is worth approximately $2.6
billion. The transaction is expected to be completed on December
11, 2012.
Medicis Pharma is engaged in the development and marketing of
products for the treatment of dermatological and aesthetic
conditions in the US. Key products include Solodyn, Perlane,
Restylane, Ziana, Dysport and Zyclara.
Per the modified deal with Gladerma, Valeant will make an upfront
payment apart from a royalty to the former on sales of Sculptra, an
injectable anti-aging facial therapy. Moreover, Valeant will get
the North American rights of Emervel, an innovative next generation
family of hyaluronic acid dermal fillers. The terms of the
revised agreement are subject to the successful closure of Valeant
Pharma’s impending takeover of Medicis Pharma. Moreover, Valeant
Pharma also settled a lawsuit with Gladerma pertaining to its
impending purchase of Medicis Pharma.
We remind investors that in November 2012, Q-Med AB, a division of
Gladerma, filed a lawsuit against Medicis alleging that the latter
breached the agreement between the two companies. Q-Med granted
Medicis exclusive US and Canadian rights to market certain dermal
filler products, including Restylane and Perlane. Q-Med sought a
preliminary injunction to prevent the Medicis–Valeant deal.
However, the lawsuit was dismissed earlier in the month.
Our Recommendation
We currently have an Outperform recommendation on Valeant Pharma.
The stock carries a Zacks #2 Rank (Buy rating) in the short
run.
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
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