Valeant Pharma to Purchase Vital Science Corp

According to a Socaltech.com report, Valeant Pharmaceuticals (VRX.N) will purchase Vital Science Corp., a Toronto-based manufacturer of over-the-counter dermatology products in the 2^nd quarter of 2010. They have recently acquired two other dermatology firms, both in Brazil. One of the firms, a private Brazilian company focusing on branded generics and OTC products, reported annual sales in the 49 million Brazilian reals range (about 26.7 million dollars US) with an average compounded growth of 15% per year. Purchase price for this company is reported to be approximately 56 million US$ and will be consummated in the 2^nd quarter of 2010.

"This latest transaction, along with Valeant's acquisition of Instituto Terapeutico Delta Ltda last month, will be our second acquisition in Brazil this year," stated J. Michael Pearson, chairman and chief executive officer. "We see strong synergies between these two acquisitions and our current operations in Brazil and believe that the combination of all three businesses will provide Valeant with expanded opportunities for growth in Brazil and enhance our Latin American franchise. This new business operation has had product sales that have grown in excess of 30% over the last year, while also achieving operating margins greater than 20%. Incorporating our new, state-of-the-art manufacturing plant in Indaiatuba will also provide us the ability to achieve significant growth and synergies across all three businesses."

The company has been on a shopping spree over the past few years, with purchases in 2009 of EMO-FARM, Mexico’s Tecnofarma S.A. de C.V. (Tecnofarma); Private Formula Holdings International Pty Limited (PFI) in Australia; Canadian skincare firm, Laboratoire Dr. Renaud and another US company. Last May, Valeant bought trademarks, inventory and intellectual property for dermatology products that were sold in New Zealand and Australia.

Valeant Pharmaceuticals International (Valeant) is a multinational specialty pharmaceutical company that develops, manufactures and markets pharmaceutical products. Their specialty pharmaceutical and over-the-counter (OTC) products are marketed under brand names and sold in the US, Canada, Australia and New Zealand. Valeant also has branded generic and OTC operations in Europe and Latin America, which focus on pharmaceutical products that are bioequivalent to original products and are marketed under company brand names. The Company’s product portfolio consists of 380 products with approximately 2,000 stock keeping units. The Company’s products are sold through three segments: Specialty Pharmaceuticals, Branded Generics/Europe and Branded Generics/Latin America.