Valeant to buy Afexa

Canada-based drugmaker Valeant Pharmaceuticals is to purchase Afexa Life Sciences for around C$76m.

It is the latest in a series of major acquisitions during 2011 that has seen Valeant take ownership of Lithuanian speciality firm AB Sanitas, Swiss company PharmaSwiss SA and Sanofi's dermatology unit, Dermik.

The company was also involved in a hostile takeover bid for Cephalon, and recent reports have suggested Valeant is keen to acquire Swedish pharmaceutical firm Meda as well as Medicis Pharmaceutical.

The Afexa acquisition will see Valeant take control of a company with annual revenues of around C$40m and gain the rights to brands including Cold-FX and Coldsore-FX.

J Michael Pearson, chairman and CEO of Valeant, said the purchase would deliver "significant benefits" to the company's customers, and would develop the company's over-the-counter (OTC) profile.

Pearson added: "Afexa's product line, combined with our portfolio from VitalScience, including dermaglow, and our recent Canadian launch of CeraVe, will provide the critical mass we need in the OTC market and should provide Valeant Canada with another platform for growth."

Full details of the offer will be mailed to company shareholders by September 9, 2011.