Valeant Pharmaceuticals International, Inc. has entered an agreement to acquire PreCision Dermatology, Inc. for $475 million in cash, plus $25 million for the achievement of sales-based milestones. PreCision develops and markets dermatology products including Locoid, Hylatopic, Clindagel, and BenzEFoam. The transaction is expected to close in 1H14.
PreCision’s two key segments are Onset Dermatologics, which focuses on prescription therapies, and PrecisionMD, which focuses on physician-dispensed products. The company is based in Cumberland, RI and has approximately 175 employees.
"PreCision Dermatology has a wide range of medical dermatology products, treating a number of topical disease states such as acne and atopic dermatitis, and should bring tremendous value to Valeant's medical dermatology portfolio," said J. Michael Pearson, chairman and chief executive officer of Valeant. "Furthermore, PreCision's diversified portfolio of products enjoys high physician loyalty, premium product quality and lifecycle management opportunities that will enhance our future growth strategies. We believe this acquisition will strengthen Valeant's product portfolio and solidify our position as a leader in dermatology."
"We are very excited for the opportunity to be part of the fast growing Valeant organization. The combined resources of both companies will create a strengthened competitor, poised to contend with the leading companies in the dermatology market," said Bob Moccia, chief executive officer of PreCision Dermatology.
J.P. Morgan Securities LLC acted as exclusive financial advisor to PreCision, and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP acted as legal advisor to PreCision. Sullivan & Cromwell LLP acted as legal advisor to Valeant.