Valeant buys a lot of pharmaceutical companies

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Valeant Pharmaceutical is still ongoing with its shopping spree as they continue with their goal of becoming one of the largest dermatological treatment companies worldwide.

On Friday, the company announces their intentions to buy the Ortho Dermatologics division of Janssen Pharmaceuticals Inc. for $345 million.  The same company has a sale of $150 million last year.

On Monday, the company involved with buying a skin care treatment company Dermik, a corps of multinational pharmaceutical firm Sanofi, for $425 million.

CEO Michael Pearson says bigger deals get the job done quicker, but they have made a lot of progress in the last 2 years.  They have started with just a $20 million business; it rose to $1 billion after 3 years.

Four latest deals costing some $1.2 billion is going to add $700 million in annual revenues and $325 million in pre-tax operating earnings (EBITDA). The deals prepared through a Barbados subsidiary.

Valeant believe that they could fund the transaction by means of its $200-million credit facilities and $1 billion worth of debt.

The recent purchase of AB Sanitas for $424 million meant that Valeant going to be the largest dermatological player in Central Europe.  The international dermatological market is uneven.  Valeant expected to have about 10% of the prescription market, but less than the overall topical market.

The Ortho Dermatologics acquisition is going to present the ownership of prescription brands like acne treatment Retin-A Micro and Renova, a wrinkle lessening drug. Aside from gaining additional sales force and administrative office in Montreal, the deal includes the 27,000 square metre state-of-the-art plants in Laval, which makes topical dermatological products.

In the coming two to three years, the company expects to move their operation to the new location so that they could cut the cost.

They are not sure if the move would create any job, but they are certain that it would cut the production cost in some way.

Pearson claims dermatology to be one of the most attractive therapeutic areas for Valeant.  The company intends on using a strategy to each product into each division, which will cater for medical and aesthetic uses.

If things are uncertain, they might end up selling the aesthetics business.  However, that would only be done if there are companies that are willing to pay the right price.

In the past Valeant well-known as Biovail, a company that specializes in developing, marketing and marketing a wide range of pharmaceutical products, the company dedicated on areas such as neurology, dermatology and branded generic.