Valeant Approaches Medicis for a potential take over
Earlier on Monday, the Wall Street Journal confirmed a familiar rumor regarding the probable take over of Medicis Pharmaceutical by Valeant Pharmaceuticals. Sources attribute the poor performance of Medicis shares in the broader market to the curious death of Medicis CEO Jonah Shacknai’s girlfriend in July, say authorities, subsequent to which the company was left vulnerable to a potential acquisition.
The Arizona-based company has been actively targeting companies for acquisitions ever since its unsuccessful attempt to take over Cephalon, which was acquired for $6.8 billion by Teva in May. Amongst the list of potential targets short-listed by Valaent, sources noted that the company recently approached Meda for a potential deal valued at over $4 billion, if approved.
The acne treatment Solodyn (minocycline) and Dysport (abobotulinumtoxinA), which are Medicis’s dermatological and aesthetic products, would shore up Valeant’s own interest in dermatology. Last year, Valaent recorded revenues totaling to $700 million.