Valeant Pharma acquires Visudyne from QLT

Acquisitive Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) said yesterday that it has acquired the photodynamic therapy product Visudyne (verteporfin) from QLT (Nasdaq: QLTI), which is also based in Canada. The product is used to treat abnormal growth of leaky blood vessels in the eye caused by wet age-related macular degeneration.

QLT's stock rose 7.4% to C$7.96 in early trading on the Toronto Stock Exchange yesterday, while Valeant edged up just 0.4% to C$53.55.

Valeant paid $62.5 million upfront for all US rights and available inventories for Visudyne, which had US revenue of approximately $21 million in 2011, and another $50 million upfront for rights to non-US royalties on Visudyne sales, which were around $14 million in 2011. Valeant has also agreed to pay an additional $5 million in contingent payments relating to the development of QLT's laser program in the USA and up to $15 million in contingent payments relating to the non-US royalties. Additionally, Valeant has manufacturing rights and assumed a supply agreement for outside the USA. The transaction is expected to be immediately accretive.