Valeant shares shoot higher on Medicis deal

(Reuters) - Valeant Pharmaceuticals International Inc's stock jumped 15 percent on Tuesday morning on news of the Canadian drugmaker's $2.6 billion deal to take over U.S. dermatology competitor Medicis Pharmaceutical Corp.

Medicis stock rose 38.0 percent to $43.55, which was still below Valeant's $44 a share offer. Valeant, Canada's biggest public drugmaker, announced an agreement to buy Medicis on Monday, when markets were closed in Canada and the United States.

The combined company would dominate the U.S. dermatology market. Medicis led the market in gross sales in 2011, while Valeant was ranked third, Valeant said on a conference call on Tuesday.

On the call, Valeant Chief Executive Michael Pearson said he does not expect a bidding war for Medicis.

"I think we paid a very fair price," he said. Pearson said Medicis is particularly valuable to Valeant, in part because the two companies' drug portfolios are complementary. Valeant's offer is a 39 percent premium on the Friday closing price of Medicis shares.

Pearson also said he does not expect regulators to force Valeant to spin off any significant Medicis products.

Last December, the U.S. Federal Trade Commission approved Valeant's acquisitions of the dermatology units of Sanofi and Johnson & Johnson on the condition that Valeant sell off the rights to three prescription drugs.

Valeant has been on the acquisition trail since its 2010 takeover by Biovail Corp, which assumed the Valeant name. The company said the Medicis deal, its biggest since a failed $5.7 billion bid to acquire specialty drugmaker Cephalon Inc last year, would add to its cash earnings per share immediately.

Pearson told Reuters on Monday that more deals are likely this year, though they would be smaller.

Valeant's stock was up 15.4 percent at C$58.23 in early trading on Tuesday on the Toronto Stock Exchange.

(Reporting by Allison Martell; Editing by Peter Galloway)

Source: http://news.yahoo.com/valeant-shares-shoot-higher-medicis-deal-142524220--finance.html

herniated disc sacramento kings luke scott tom benson royals nicole richie lyme disease symptoms