Valeant deal to acquire Actavis on hold

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Valeant deal to acquire Actavis on hold

Home/Pharma News | Posted 10/05/2013 0 Post your comment

Drugmaker Valeant Pharmaceuticals International (Valeant) was in talks to acquire generics manufacturer Actavis for more than US$13 billion, in what would rank as one of the biggest healthcare deals this year. However, reports are that the deal is now on hold.

The proposed merger of Valeant and Actavis was put on hold after the two drugmakers failed to agree on terms of a deal that would have created a healthcare giant with a combined market value of US$35 billion, according to Reuters.

Canada-based Valeant was seeking to buy smaller US rival Actavis for more than US$13 billion before the discussions broke down because of disagreements on the proposed terms. The main issue for Actavis directors appears to be the size of the deal premium.

Valeant has been involved in a wide range of deals over the last three years, acquiring nearly 25 assets or smaller companies, and most recently purchasing dermatology specialist Obagi Medical Products for US$439 million. Actavis, as the third-largest global generics drugmaker, would be Valeant’s biggest deal so far. The company is itself the product of a merger. It changed its name in January 2013 the US company Watson bought Switzerland-based Actavis as part of its strategy to expand in international markets and offer more specialty drugs.

It was not clear if the deal between the two companies can be resurrected or not.

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Source: Reuters,The New York Times