Canada-based Valeant Pharmaceuticals will acquire AB Sanitas in an agreement worth approximately €314m ($442.9m) in cash, weeks after the company failed to purchase Cephalon .

The deal includes €50m of debt from the Lithuanian company and will expand on Valeant’s portfolio of branded European generics, with Valeant chief executive Michael Pearson telling Reuters that Valeant “will be in a key position” to continue its expansion into Central and Eastern Europe.

Valeant had attempted to acquire the US-based biotechnology company Cephalon with a $5.7bn approach, but Teva Pharmaceutical topped Valeant’s bid and sealed the transaction in early May.

Major shareholders of AB Sanitas have agreed to sell 87.2% of the outstanding shares of the company to Valeant, who will commence a mandatory tender offer to acquire the remaining interest.