Valeant Buys QLT's Visudyne - Analyst Blog
26 Setembro 2012 - 1:25PM
Zacks
Valeant Pharmaceuticals International, Inc.
(VRX) recently announced that it has acquired QLT
Inc.’s (QLTI) Visudyne. To acquire the US rights to
Visudyne and the available inventories, Valeant has made an upfront
payment of $62.5 million. The company paid another $50 million for
the royalty rights to Visudyne’s ex-US sales and will assume the
responsibility of supplying Visudyne for ex-US sales.
We note that QLT had an agreement with Novartis AG
(NVS) for the commercialization of Visudyne in ex-US territories.
Novartis is obligated to pay a royalty of 20% of ex-US sales of
Visudyne till 2014 and thereon 16% till 2019.
Under the terms of the agreement, Valeant will make contingent
payments of $5 million for the development of QLT's laser program
in the US. Valeant has also agreed to contingent payments of up to
$15 million for ex-US royalties.
Visudyne is used for treating abnormal growth of leaky blood
vessels in the eye caused by wet age-related macular degeneration.
In 2011, Visudyne generated revenues of approximately $21 million
in the US and the ex-US royalties recorded by QLT during that
timeframe were approximately $14 million. We expect the deal to be
accretive for Valeant.
We note that Valeant is on an acquisition spree to expand its
business. Earlier this month, the company announced its intention
to acquire Medicis Pharmaceutical Corporation
(MRX) for $44.00 per share in cash. The deal value is estimated to
be approximately $2.6 billion. The transaction is expected to be
completed in the first half of 2013.
Our Recommendation
We currently have a Neutral long-term recommendation on Valeant.
The stock carries a Zacks #3 Rank (Strong Hold rating) in the short
run.
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
QLT INC (QLTI): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
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