Valeant Pharmaceuticals International, Inc.
) is a step closer to acquiring
Medicis Pharmaceutical Corp.
) with theUS Federal Trade Commission granting the early
termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvement Act of 1976.
Valeant Pharma had announced its intention to acquire specialty
pharmaceutical company, Medicis Pharma in September 2012. The
companies signed a definitive merger agreement under which
Valeant Pharma will acquire Medicis Pharma for $44.00 per share
in cash. The deal is expected to be worth approximately $2.6
On December 7, 2012, a special meeting will be held for Medicis
Pharma's shareholders. The stockholders will vote on the
acquisition proposal. The deal is expected to close within four
business days following the satisfaction of all closing terms and
conditions. At the time of announcing the deal, Valeant Pharma
stated that the acquisition is expected to boost its earnings
immediately after the closure.
We note that 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. The impending
merger will broaden Valeant Pharma's product portfolio
significantly and is expected to create a global leader in the
We note that the dermatological segment has been in the spotlight
this year. Apart from Valeant Pharma's impending acquisition of
Medicis Pharma, the acquisition of specialty dermatology generics
company, Fougera Pharma by
) in July 2012, has also been in the news. Moreover,
) recently announced that it has entered into an agreement with a
privately held company, SkinMedica, Inc. to acquire the latter's
topical aesthetics skin care business.
We currently have an Outperform recommendation on Valeant Pharma.
The stock carries a Zacks #1 Rank (Strong Buy rating) in the
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