Valeant Pharmaceuticals to acquire OraPharma for $312 million

Deal also includes as much as $114 million in potential contingent payments based on certain milestones, including revenue targets

| 1 min read

Jeffrey Bouley

MONTREAL—Valeant Pharmaceuticals InternationalInc. is making yet another acquisition, but this time it's stepping out of itsusual focus on the dermatology and ophthalmology markets as it signed anagreement recently to snatch up OraPharma. Valeant is buying the specialty oralhealth company from Water Street Healthcare Partners, a private equity firm focusedexclusively on the healthcare industry, for a total consideration ofapproximately $312 million.

To continue reading this article, subscribe for FREE to Drug Discovery News Logo

Subscribe today to keep up to date with the latest advancements and discoveries in drug development achieved by scientists in pharma, biotech, non-profit, academic, clinical, and government labs.

About the Author

Jeffrey Bouley
This person does not yet have a bio.

Related Topics

Infectious Disease & Vaccines

In addition, the deal calls for as much as $114million more in potential contingent payments based on certain milestones,including revenue targets.

"We are excited to enter a new attractive marketsegment with an already established sales infrastructure focused entirely onthe dental community," said J. Michael Pearson, chairman and CEO of Valeant. "Webelieve that this market segment has similar characteristics to the dermatology,podiatry and ophthalmology markets and should offer us the opportunity tocross-sell some of our current products, most notably our new topicalprescription cold sore medication, Xerese. We believe the OraPharma business isa new growth platform from which to build additional opportunities in thefuture."

The transaction is expected to close sometime thismonth, subject to the satisfaction of certain closing conditions, and Valeantexpects the transaction to be accretive in this calendar year.

Horsham, Pa.-based OraPharma's lead product is Arestin, a locallyadministered antibiotic for the treatment of periodontitis that utilizes acontrolled-release delivery system and is indicated for use in conjunction withscaling and root planing for the treatment of adult periodontitis.

According tothe companies, OraPharma currently has the largest specialized pharmaceuticalsales force in the dental industry and, as of March 31, 2012, OraPharma'strailing 12-month net revenue was approximately $95 million with the businessgrowing at a high single digit rate.

SOURCE: Valeant Pharmaceuticals news release

Valeant Pharmaceuticals to acquire OraPharma for $312 million

About the Author

Jeffrey Bouley

Related Topics

Subscribe to our eNewsletters

Sponsored

December 2025