Valeant Pharmaceuticals International, Inc.
) recently announced that it has acquired a 19.9% stake in
Brazilian biotech company, Pele Nova Biotecnologia S.A.
Valeant paid less than $10 million for the deal. As per the
terms of the deal, Valeant will have representation on Pele Nova's
Board of Directors, rights to future candidates in Brazil and first
global product refusal rights. Additionally, Valeant will pay a
reduced royalty percent on Regederm sales.
Regederm was included in Valeant's portfolio post the
acquisition of Instituto Terapeutico Delta Ltda. Regederm is
approved in Brazil for wound healing and is expected to be launched
in April 2012.
The company has made a number of acquisitions in the past few
quarters. A few weeks ago, on February 13, 2012, Valeant had
announced its intention to acquire Eyetech, Inc., a private eye
care company, signaling management's increasing interest in
entering the ophthalmic space. The acquisition will add Eyetech's
drug Macugen to Valeant Pharma's ophthalmic portfolio.
The Eyetech offer came on the heels of the Valeant's failure to
acquire another eyecare company, California-based
) in January 2012.
In 2012, Valeant flagged off its acquisition spree with the
successful acquisition of Brazilian sports nutrition and food
supplements company Probiotica Laboratorios Ltd. Valeant announced
that it has purchased Probiotica for R$150 million on February 1,
The Brazilian company reported net revenues of R$80 in 2011 with
an outlook of double digit revenue growth in 2012. We believe this
deal to be accretive for Valeant.
We currently have a Neutral long-term recommendation on Valeant.
The stock carries a Zacks #3 Rank (Hold rating) in the short
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