Valeant goes shopping again, this time for OraPharma

Acquisitive Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) said Friday that it has agreed to acquire OraPharma, a USA-based specialty oral health company that develops and commercializes products that improve and maintain oral health, from Water Street Healthcare Partners, a private equity firm focused exclusively on the health care industry.

The total consideration for the company is around $312 million and up to $114 million in potential contingent payments based on certain milestones, including revenue targets. OraPharma's lead product is Arestin, a locally administered antibiotic for the treatment of periodontitis that utilizes an advanced controlled-release delivery system and is indicated for use in conjunction with scaling and root planing for the treatment of adult periodontitis.

OraPharma currently has the largest specialized pharmaceutical salesforce in the dental industry and, as of March 31, 2012, OraPharma's trailing 12 month net revenue was approximately $95 million with the business growing at a high single digit rate.