Valeant continues buying spree getting rights to Cholestagel and Aczone in Canada

Canada’s Valeant Pharmaceuticals International (TSX: VRX) went on another shopping spree yesterday, with its subsidiary, Biovail Laboratories International acquiring the Canadian rights to Cholestagel (colesevelam), an oral bile acid sequestrant for hypercholesterolemia, from Genzyme, which will receive a $2 million upfront payment from Biovail, to be followed by subsequent additional milestone payments totaling up to $7 million.

"Cholestagel is a strong addition to our Canadian franchise," said Michael Pearson, Valeant’s chief executive, adding: "While this compound is currently pending marketing approval from Health Canada, the use of Cholestagel has been shown to be effective as an adjunctive option in the treatment of high levels of cholesterol in the blood in the countries where it is currently marketed. This product will be promoted by our existing sales force in Canada and will be a complementary fit with our existing Tiazac XC [diltiazem] promotions."

In addition, Biovail has entered into an agreement to license the Canadian rights to Aczone (dapsone) Gel 5%, a topical formulation of dapsone used in the treatment of acne vulgaris, from Allergan. In return, Allergan will receive a C$500,000 upfront payment to be followed by subsequent additional payments based on net sales.