Valeant spending $475 million to boost dermatology portfolio

Acquisitive Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) has entered into a definitive agreement to acquire USA-based PreCision Dermatology, for $475 million in cash, plus an additional $25 million payable upon the achievement of a sales-based milestone.

PreCision develops and markets dermatology products with leading products such as Locoid, Hylatopic, Clindagel, and BenzEFoam. PreCision expects to have around $130 million in revenue in 2014. The transaction is expected to close in the first half of 2014 and Valeant believes the transaction, once completed, to be immediately accretive to Valeant's cash earnings per share.

Valeant, which last year completed one of its biggest acquisitions, the $8.7 billion buy of eye-care specialist Bausch & Lomb, is projecting 2014 adjusted earnings of $8.25 to $8.75 a share and revenue of $8.2 billion to $8.6 billion. Last year, Valeant also bought skin-care product maker Obagi Medical Products for about $343.7 million.