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Valeant Pharmaceuticals International announced it entered into a definitive agreement under which Valeant will acquire PreCision Dermatology, Inc. for $475 million in cash, plus an additional $25 million payable upon the achievement of a sales-based milestone. PreCision develops and markets dermatology products with leading products such as Locoid, Hylatopic, Clindagel, and BenzEFoam. PreCision expects to have approximately $130 million in revenue in 2014. The transaction is expected to close in the first half of 2014, and Valeant expects the transaction, once completed, to be immediately accretive to Valeant's cash earnings per share.
"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," stated J. Michael Pearson, chairman and CEO 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, CEO of PreCision Dermatology.
PreCision operates in two key segments: onset dermatologics, which focuses on prescription therapies, and PrecisionMD, which focuses on physician-dispensed products. The company is based in Cumberland, Rhode Island, and has approximately 175 employees.