OTTAWA: Canadian pharmaceutical company Valeant announced yesterday a deal to acquire US eye health company Bausch & Lomb for $8.7bn in cash, becoming a behemoth in the burgeoning eye care sector.
The acquisition, which had been rumored, positions Valeant to capitalise on “growing eye health trends driven by an ageing patient population, an increased rate of diabetes and demand from emerging markets,” said a joint statement.
The merger also gives Valeant access to Bausch & Lomb’s large portfolio of products and “a late stage pipeline of innovative, new products.”
“With this transaction, Valeant will be a worldwide leader in both dermatology and eye health,” Valeant’s chief executive Michael Pearson summarized.
Founded in 1853, privately held Bausch & Lomb, based in Rochester, New York, is best known for its contact lenses and for products related to maintaining contact lenses, such as PureVision, Optima and ReNu.
The company also manufactures eye drops for treating eye dryness, glaucoma or allergies and materials used in eye surgery.
The purchase of Bausch & Lomb by Valeant Pharmaceuticals International, Inc follows a series of some 15 recent acquisitions by the Canadian company over the last year totalling $3.5bn.
But Bausch & Lomb is a far bigger target, enabling the Canadian firm to double its revenues in one fell swoop.
The US company, which employs 11,200 worldwide, last year reported revenues of around $3bn, according to a filing with US securities regulators. Valeant reported revenues of $3.3bn and had about 7,000 employees at the end of 2012.
Both companies had losses for 2012, with Bausch & Lomb reporting a loss of $68.3m and Valeant a loss of $116m.
The potential Bausch & Lomb deal comes on the heels of Valeant’s reportedly unsuccessful bid to buy US pharmaceutical company Actavis for more than $13 billion.
The transaction also replaces a plan launched in March for Bausch & Lomb to undertake an initial public offering. Valeant said the transaction will be financed with debt and approximately $1.5bn to $2bn of new equity.
AFP
