Valeant reaches deal to buy iNova Pharmaceuticals for up to 700 million Australian dollars

Valeant Pharmaceuticals announced Monday an agreement to buy iNova Pharmaceuticals from private equity firms Archer Capital and Ironbridge for up to 700 million Australian dollars ($692 million). "This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa," remarked Valeant CEO J. Michael Pearson.

The deal includes a 625-million Australian dollar ($618 million) upfront payment, as well as up to 75 million Australian dollars ($74 million) in milestone payments tied to the success of pipeline activities, product registrations and overall sales. Valeant noted that iNova markets and distributes a range of prescription and over-the-counter products in Australia, New Zealand, Southeast Asia and South Africa, including the weight management drug Duromine.

According to Valeant, iNova is forecast to generate revenue of around 200 million Australian dollars ($198 million) in 2011, while sales have grown at approximately 10 percent per annum over the last four years. Valeant said the transaction is expected to be immediately accretive.

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