Valeant to acquire pharmaceutical company in Brazil for $56 million

California, USA-based Valeant Pharmaceuticals International says that it has signed a binding agreement to acquire an unnamed, privately-held pharmaceutical company located in Brazil, for 97 million reals ($56 million).

The Brazilian company primarily focuses on branded generics and over-the-counter (OTC) products and had annual sales of around 49 million reals in 2009. Over the past five years, the company has delivered a compound annual growth rate of approximately 15% in local currency terms. The transaction, which is subject to customary conditions, is expected to close in the second quarter of 2010 and will be accretive to Valeant in 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 Michael Pearson, chairman and chief executive of the US firm.