Valeant buys Medicis
The deal puts the Medicis lineup of acne-fighting drugs and aesthetic enhancers, including Dysport, Perlane and Restylane, under the same roof as Valeant's offerings which include acne-fighters Acanya and Atralin and the OTC skincare line, CeraVe. Valeant's overall reach includes CNS products and ophthalmology treatments, among others.
Tuesday's announcement is one of a string of acquisitions, the most recent of which include the June 18 purchase of OraPharma Topco Holdings, adding the local antibiotic Arestin to its offerings, for $298.7 million in cash. This purchase was preceded by the May 23 acquisition of skincare assets from University Medical Pharmaceuticals for $64 million, the May 2 purchase of assets from generic drug maker Atlantis and the $164 million purchase of assets from generics firm Gerot Lannach, as well as the $85.9 million transaction in February in which Valeant picked up supplements and sports-drinks maker Probiotica Laboratorios.
This is in addition to three other transactions for the first six months of the year, which also included sweeping up the biotech firm Eyetech for $22.3 million.
The company describes itself as a multinational, specialty pharmaceutical company that focuses on dermatology, neurology and branded generics. The Medicis purchase means this same company is now dedicated to “helping patients attain a healthy and youthful appearance and self image.”
Although Tuesday's news makes Valeant's portfolio appear to be a mirror version of Allergan's, there remain many differences, despite the common interests in eye care, facial aesthetics, dermatology and neuroscience.
Valeant's latest financials, for example, show a net loss of $21.6 million for the quarter ended June 30, compared with a net profit of $56.4 million for the same period the year before, and a $35 million net loss for the six months ended June 30, compared with a net profit of $62.8 million for the same period the year before. Meanwhile, Medicis closed out the quarter ended June 20 with $15 million in net income, down from $29 million for the same period last year, attributing part of the increase in sales, general and administrative costs to partner payments. It exited the six months ended June 30 with net earnings of $20 million, compared to net earnings of $48 million for the same period last year.
In contrast, Allergan's net earnings for the quarter ended June 30 were close to $296 million, compared to $246 million for the same period the year before, and sales for the six months ended June 30 were $525 million, compared to $405 million for the same period last year.