Will complement expanding dermatology business says CEO
Valeant Pharmaceuticals has continued its extensive series of acquisitions and purchased Pedinol Pharmacal, a US-based pharma company specialising in footcare products.
The Canadian firm will gain control of Nalfon (fenoprofen), which is used to relieve the symptoms of conditions such as rheumatoid arthritis, osteoarthritis, and mild to moderate pain, as well as Gris-Peg (griseofulvin), an oral antifungal drug to treat ringworm infections, including athlete's foot.
The company said the deal would cost it less than 1.5 times the value of Pedinol's annual revenues of $18m, giving the US company a price tag of around $27m.
Valeant's chair and CEO, J Michael Pearson said that expanding into podiatry was a “natural extension” for the company, claiming it would complement Valeant's existing activities in dermatology.
A major aspect of this was the company's purchase of Sanofi's Dermik unit for $425m in July, 2011, which included Sanofi's site in Laval, Quebec.
Valeant later said this site would be turned into an R&D centre of excellence for consumer dermatology, with support from the Quebec government.
Regarding the latest acquisition, Pearson said: “Pedinol has over 85 years of experience in podiatry and a highly regarded national field sales organization, which are both key as we prepare for broader expansion into this market.
“We expect Pedinol's established presence in the podiatry market to be a valuable asset for Valeant."
The deal adds to Valeant's spending spree over the past year, which has seen it make several acquisitions across the world in several therapy areas.
Most recently, it made major moves into the eastern European market with the purchase of Russian OTC firm Natur Produkt for $180m as well as a portfolio of generics products sold mainly in Russia and the Commonwealth of Independent States (CIS) from Austria-based Gerot Lannach.