GlaxoSmithKline sells US, Canadian Zovirax rights to Valeant for $300 million

GlaxoSmithKline agreed to sell US and Canadian rights to non-ophthalmic topical formulations of Zovirax (aciclovir) to Valeant Pharmaceuticals' Biovail subsidiary for $300 million, the Canadian company announced Thursday.

Biovail had previously been the exclusive distributor of Zovirax in the US, although Valeant CEO J. Michael Pearson noted that the existing agreement had been "problematic for both companies." He said that the "new arrangement should solve this issue," adding that "we believe that our sales and marketing organisations in the US and Canada have the ability to revitalise and grow the brand."

According to Valeant, the deal will be financed through the offering of $650 million of senior unsecured notes. The company indicated that proceeds from the offering would also be used to finance its recent agreement to acquire branded generic drugmaker PharmaSwiss.

To read more Top Story articles, click here.