Valeant Pharmaceuticals International Inc. has struck an agreement to acquire PreCision Dermatology Inc. for $475-million (U.S.), the latest deal in its bid to become one of the world's top five drug companies by the end of 2016.
Canada's largest publicly traded drug company said on Monday it will pay an additional $25-million for PreCision upon the achievement of an unspecified sales-based milestone.
Cumberland, R.I.-based PreCision develops and markets dermatology products and expects revenue of about $130-million this year. It has about 175 employees.
Valeant chairman and chief executive officer Michael Pearson said last month that Valeant would need a market capitalization of about $150-billion (Canadian) to break into the top five. It is currently within the top 15.
Valeant is building up its dermatology business and the PreCision acquisition is part of that strategy. Last year, Valeant bought skin-care product maker Obagi Medical Products Inc. for about $343.7-million (U.S.).
In 2012, Valeant paid $2.6-billion for skin-care specialist Medicis Pharmaceutical Corp. of Scottsdale, Ariz.
"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, Mr. Pearson said in a news release Monday.
Valeant's other businesses include eye care, neurology and branded generics.