Valeant Pharma to acquire assets from University Medical; posts 1st-qtr loss

Acquisitive Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) says it has agreed to acquire certain assets from University Medical Pharmaceuticals Corp, a specialty pharmaceutical company focused on skincare products, for approximately $64 million plus potential milestones based upon attainment of future revenue targets. University Medical's main brand is AcneFree, a leading retail over-the-counter (OTC) acne treatment.

Total revenue in 2011 from the acquired assets was around $32 million. The transaction is expected to close by mid-year, subject to certain closing conditions including expiration of requisite regulatory waiting periods, and is expected to be immediately accretive.

"The addition of a leading OTC acne treatment will provide us with the ability to expand our OTC business," stated Michael Pearson, chairman and chief executive, adding: "We believe that we can build upon our success with CeraVe in the retail channel through increased offerings to consumers. These new products will be immediately accretive to our operations and have not been factored into our 2012 financial guidance."