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April 1, 2015

Canada’s Valeant buys Salix for $11bn

Canada-based Valeant Pharmaceuticals International has completed the acquisition of US-based Salix Pharmaceuticals for around $11bn.

Canada-based Valeant Pharmaceuticals International has completed the acquisition of US-based Salix Pharmaceuticals for around $11bn.

Under the deal, Valeant has acquired all outstanding common stock of Salix for $173.00 per share in cash.

Based in Raleigh of North Carolina, Salix develops and markets prescription pharmaceutical products and medical devices to treat gastrointestinal diseases.

Both firms first entered the deal in February this year, when Valeant agreed to pay $158.00 per Salix share or an enterprise value of $14.5bn.

"This revised offer provides Salix shareholders with all-cash at a significant premium and the certainty to close by 1 April."

In March, Valeant increased its offer price for Salix, as specialty healthcare firm Endo Internationl proposed to pay $175 per Salix share.

Under the amendment, Valeant agreed to pay an increased price of $173.00 per share to Salix over the original price of $158.00 per share, adding around additional $1bn cash to Salix stockholders.

At the time of amendment of agreement, Valeant Pharmaceuticals International chairman and CEO Michael Pearson said: "This revised offer provides Salix shareholders with all-cash at a significant premium and the certainty to close by 1 April."

Salix Pharmaceuticals board chairman and acting CEO Thomas D’Alonzo said: "We are pleased that the enhanced offer price recognises the value of Salix as the leading gastrointestinal specialty pharmaceutical company and delivers to our stockholders all cash consideration in the near future."

Holding a significant share in gastrointestinal market, Salix produces 22 products, including prescription brands.

Salix produces gastroenterology treatments such as Xifaxan (rifaximin) 550mg, Ruconest (C1 esterase inhibitor [recombinant]), Apriso (mesalamine), Uceris (budesonide) extended release tablets and Relistor (methylnaltrexone bromide).

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