ALISO VIEJO, Calif., Sept. 29 /PRNewswire-FirstCall/ -- Valeant Pharmaceuticals International today announced that, for a one-time payment of $115 million, it has agreed to buy-out income rights associated with all out-licensed and pipeline products and the former stockholders of Dow Pharmaceutical Sciences, Inc. have agreed to release Valeant from up to $235 million in milestone obligations they could have received upon successful commercialization of Dow pipeline compounds currently under development. Income rights to the 1% clindamycin and 5% benzoyl peroxide gel Abbreviated New Drug Application were excluded from the acquisition of Dow by Valeant in December 2008.
"We believe this transaction creates significant short-term and long-term value for Valeant shareholders," stated J. Michael Pearson, chairman and chief executive officer. "In the short-term, we immediately offset the erosion from our ribavirin royalties and in the longer-term, we could avoid considerable future milestone obligations that would be incurred if we successfully commercialize our dermatology compounds acquired from Dow. After reviewing phase II results on three of our dermatology compounds and meeting with the FDA this past summer, we believe these compounds have strong potential for future success. We can now turn our efforts to moving these compounds into phase III studies and continuing to focus on building a strong dermatology franchise."
About Valeant
Valeant Pharmaceuticals International is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology and dermatology. More information about Valeant can be found at www.valeant.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements, including, but not limited to, statements regarding the Dow pipeline currently under development and their impact on future growth and the successful commercialization of our dermatology portfolio. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that phase II results may not be indicative of the success of phase III studies or the commercial success of any products, and other risks and uncertainties discussed in the company's most recent annual or quarterly report filed with the Securities and Exchange Commission, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.
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SOURCE Valeant Pharmaceuticals International
CONTACT: Laurie W. Little of Valeant Pharmaceuticals, +1-949-461-6002,
laurie.little@valeant.com
Web site: http://www.valeant.com/
