Valeant Pharmaceuticals International, an Aliso Viejo-based drug maker, said Wednesday that it was buying a skin care company to build up its Australian dermatology business.
Valeant is paying $69 million in cash and issuing 162,500 shares of its stock for Private Formula International Holdings Pty Ltd.
The deal gives Valeant rights to skin care lines Dr. LeWinn’s and Hissyfit, and Revitanail, a line of nail strengtheners known as Renunail in the U.S.
Valeant said that the brands would “dramatically increase our presence” in over-the-counter sales in pharmacies.
Valeant said it expects the Private Formula deal to close in early October, and add to its 2010 results.
Separately, Valeant said it’s paying $115 million for income rights to licensed and pipeline products associated with former shareholders of Dow Pharmaceutical Sciences Inc.
Valeant bought Dow, a Petaluma-based maker of drugs for acne and other skin ailments, earlier this year for $285 million. Dow isn’t related to Dow Chemical Co.
Chief Executive J. Michael Pearson said in a statement that the Dow deal offsets the erosion of royalties from Valeant’s ribavirin hepatitis C drug and avoids milestone payments that it would have to pay if it successfully developed the compounds it bought from Dow.
