Canada’s Valeant Pharmaceuticals International has agreed to acquire Australia-based iNova, a private pharmaceutical group.
iNova owns, develops and markets a portfolio of prescription and OTC pharmaceutical products in the Asia-Pacific region and South Africa, including therapeutic weight management brands such as Duromine and OTC brands in the cold and cough market such as Difflam and Duro Tuss.
Valeant develops, manufactures and markets a range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics in the US, Canada, Mexico, Brazil, Central and Eastern Europe, and Australia.
Valeant will pay iNova shareholders A$625 million up front and up to an additional A$75 million in potential milestones based on the success of pipeline activities, product registrations and overall revenue.
iNova's total 2011 revenues are expected to be approximately A$200 million, with an operating margin of approximately 40 percent. Revenues have grown at a rate of approximately 10 percent per annum over the last four years.
Commenting on the deal, Valeant’s chairman and chief executive officer J. Michael Pearson said: "This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa.
“iNova has a talented management team that has created a strong business operation ahead of an intended initial public offering and with the current market softness, Valeant has a unique opportunity to acquire iNova and integrate our Australian operations into the broader iNova Asia Pacific business."
Based in Mississauga, Ontario, Valeant employs approximately 5,000 people worldwide.