Valeant: Buy This ‘Spring Loaded’ Stock Now
Valeant Pharmaceuticals (VRX) just announced that it has entered into an agreement with privately-held equity firm Water Street Healthcare Partners to acquire OraPharma, a US-based specialty oral health company. Valeant will pay around $312 million and may have to make additional milestone payments totaling $114 million. Subject to certain regulatory approvals, the deal is expected to close by the end of the month. The portfolio of OraPharma consists of Arestin (minocycline hydrochloride) which is indicated as an add-on therapy for scaling and root planing (SRP) procedures for the reduction of pocket depth in patients with adult periodontitis. Arestin can also be used for periodontal maintenance programs in connection with good oral hygiene. OraPharma has revenues of approximately $95 million and has the largest specialist pharmaceutical sales force.
Valeant has been on an acquisition binge in its quest for business expansion. Last month, it announced agreements to acquire certain assets from University Medical Pharmaceuticals as well as Swiss Herbal Remedies Limited. In April, Valeant bought US-based, privately-owned specialty pharmaceutical company, Pedinol Pharmacal, Inc. as well as certain branded generic assets from Mexican pharmaceutical company, Atlantis Pharma. In March, Valeant concluded a deal to buy the Russian specialty pharmaceutical company Natur Produk as well as an agreement to acquire certain branded generic assets from an Austrian pharmaceutical company, Gerot Lannach. It also bought a 19.9% stake in a Brazilian biotech company, Pele Nova Biotecnologia S.A. You may recall that Valeant started the year 2012 by buying Brazilian sports nutrition and food supplements company Probiotica Laboratorios Ltd.To continue reading, click here.