Valeant becomes market leader in GI with Salix acquisition

RALEIGH, N.C. — Valeant Pharmaceuticals on Sunday agreed to acquire Salix Pharmaceuticals for $158 per share in cash, or a total enterprise value of approximately $14.5 billion. The transaction was approved by the boards of directors of both companies. 

 

Salix Pharmaceuticals is a widely recognized gastrointestinal market leader with a portfolio of 22 total products, including well-known prescription brands Xifaxan, Uceris, Relistor and Apriso, as well as a strong near-term pipeline of innovative, new assets. 

 

"Salix's market-leading gastrointestinal franchise is an ideal strategic fit for Valeant's diversified portfolio of specialty products," stated Michael Pearson, Valeant's chairman and CEO. "The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising near-term pipeline of innovative products. With strong brand recognition among specialist GI prescribers, a highly rated specialty sales force, and a significant product and commercial presence across the undertreated and underserved gastrointestinal market, this acquisition offers a compelling opportunity for Valeant to create a strong platform for growth and business development."

 

"Combining Salix's leading market position in gastroenterology with Valeant's scale and resources will create a stronger and more diverse business committed to providing better health solutions to healthcare providers and their patients," added Thomas D'Alonzo, Salix chairman and acting CEO. "We are proud of the accomplishments of our Salix team. Together, we have built our company into the leading gastrointestinal specialty pharmaceutical company, providing solutions for patients and healthcare providers. We look forward to working with the Valeant team to ensure a smooth transition."

 

The transaction, which is expected to close in second quarter 2015, is subject to customary closing conditions and regulatory approval.

 

Sullivan & Cromwell served as Valeant's legal counsel, and Salix was advised by Cadwalader, Wickersham & Taft. Deutsche Bank and HSBC acted as financial advisers to Valeant.  Centerview Partners and J.P. Morgan acted as financial advisers to Salix. Fully committed debt financing has been provided by Deutsche Bank Securities, HSBC, Mitsubishi UFJ Securities, DNB Bank ASA and SunTrust Robinson Humphrey.