Valeant to acquire rights relating to Elidel and Xerese from Meda

Jun 30 2011

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announced today that its subsidiary, Valeant International (Barbados) SRL (VIB), has signed an agreement to acquire rights to both Elidel (pimecrolimus 1% cream) and Xerese (acyclovir and hydrocortisone cream 5%/1%) from Meda, an international specialty pharmaceutical company (listed on Nasdaq Nordic Exchange in Stockholm) for the U.S., Canada and Mexico. Valeant will pay Meda initial payments of approximately $76 million and over the next 18 months, will pay a series of potential milestones and royalties totaling approximately $130 million. Thereafter, Valeant will pay a long term running double digit royalty rate on net sales of Elidel, Xerese and Zovirax® including additional minimum royalties of $120 million during 2013 - 2015. Valeant has exclusive rights to Zovirax in the U.S. and Canada. In addition, Valeant and Meda have entered into a development agreement for future life cycle management of both Elidel and Xerese. The transaction is expected to be accretive immediately.

"As previously announced, the addition of a strong worldwide brand such as Elidel is a significant enhancement to our growing North American dermatology portfolio," stated J. Michael Pearson, chairman and chief executive officer. "The addition of Xerese, which was recently approved by the U.S. Food and Drug Administration, gives us a new strong platform for growth and will be a complementary addition to our dermatology franchise, solidifying our position as a leading dermatology company. We believe that dermatology is an attractive therapeutic area for Valeant and will continue to look for opportunities to expand our presence with dermatologists in our key markets."