| 2 min read
Register for free to listen to this article
Listen with Speechify
0:00
2:00
MONTREAL—Valeant Pharmaceuticals International, Inc. hasannounced the signing of a definitive agreement with Obagi Medical Products,Inc. under which Valeant will acquire all of Obagi's outstanding shares ofcommon stock for $19.75 per share in cash. The acquisition price represents a28-percent premium over the closing share price of Obagi's stock on March 19,the last trading day before the transaction was announced. The acquisition isexpected to close in the first half of this year, and Obagi's board ofdirectors has unanimously approved the transaction.
 
 
"Our Board of Directors has determined that this all-cashoffer is in the best interest of our stockholders and validates both the hardwork from our employees and our brand's unique leadership position within themarket. We look forward to being part of the Valeant family of companies,"Albert Hummel, president and CEO of Obagi, commented in a statement.
 
 
Per the terms of the definitive agreement, Valeant willcommence a tender offer for all of Obagi's outstanding shares at a price of$19.75, for an approximate total of $360 million. The tender offer isconditioned on a few provisions, including the tender of a majority of Obagi'sshares on a diluted basis, the receipt of necessary regulatory approvals andother customary closing conditions. Once the offer is completed, Obagi will bemerged with a wholly owned subsidiary of Valeant, and all outstanding sharesthat were not tendered to the offer will be converted into the right to receivethe same $19.75 per share in cash.
 
 
"The acquisition of Obagi will be a valuable supplement toValeant's current dermatology portfolio and will further build upon our growingaesthetics franchise," J. Michael Pearson, chairman and CEO of Valeant, said ina press release regarding the transaction. "Obagi is a leader in the physiciandispensed market and enjoys a strong brand perception among physicians. Theaddition of their products will not only strengthen and diversify our dispensedportfolio, but also expand our market presence with dermatologists and plasticsurgeons."
 
 
Once the transaction is complete, Valeant expects it to beimmediately accretive to its cash earnings per share. And while no details werereleased as to Valeant's plans for Obagi's employees or facilities, Valeantexpects to see cost synergies at an annual run rate of at least $40 millionwithin six months of the deal's close.
 
 
Obagi specializes in topical aesthetic and therapeuticskin-health systems, with dermatological brands such as Obagi Nu-Derm, Condition& Enhance, Obagi-C Rx, ELASTIDerm and CLENZIDerm. The company reportedtotal revenues of roughly $120 million last year.
 
 
The transaction is the second company acquisition forValeant so far this year. The company reported the acquisition of Natur ProduktInternational, JSC, a specialty pharmaceutical company based in Russia. Theacquisition total was approximately $163 million.

About the Author

Related Topics

Loading Next Article...
Loading Next Article...
Subscribe to Newsletter

Subscribe to our eNewsletters

Stay connected with all of the latest from Drug Discovery News.

Subscribe

Sponsored

A black mosquito is shown on pink human skin against a blurred green backdrop.

Discovering deeper insights into malaria research

Malaria continues to drive urgent research worldwide, with new therapies and tools emerging to combat the parasite’s complex lifecycle and global burden.
Three burgundy round and linear conformations of oligonucleotides are shown against a black background.

Accelerating RNA therapeutic testing with liver microphysiological platforms

Researchers can now study oligonucleotide delivery and efficacy in a system that models a real human liver.
A 3D-rendered illustration of a eukaryotic cell highlighting organelles such as the nucleus, endoplasmic reticulum, mitochondria, and cytoskeletal structures in pink and purple tones.

Shining light on the subcellular proteome

Discover how innovative proteomics tools help researchers peer into once inaccessible organelles, allowing for new targets for drug discovery and development.
Drug Discovery News March 2025 Issue
Latest IssueVolume 21 • Issue 1 • March 2025

March 2025

March 2025 Issue

Explore this issue