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