Valeant acquires AB Sanitas

Canada-based Valeant Pharmaceuticals International is to acquire Lithuanian speciality pharmaceutical company AB Sanitas in a two-stage deal worth €314m.

AB Sanitas sells about 390 generic products in nine Central and Eastern European countries. Its largest markets are Poland, Russia and Lithuania.

Valeant said the major shareholders of AB Sanitas have agreed to sell an 87 per cent stake in the company. That portion of the deal is expected to close during the third quarter, and Valeant said it will then start an offer for the remaining shares.

The Ontario-based company expects to assume €50m ($70.3m) in debt as part of the deal. The acquisition is expected to close during the fourth quarter of 2011.

AB Sanitas is based in Kaunas and develops its own dermatology, ophthalmology and hospital injectable drugs.