It is anticipated that the transaction will yield more than $500 million in annual cost savings from the cost base of the combined company, according to a news release. The deal is expected to close in the second quarter of 2015.
“Salix’s market-leading gastrointestinal franchise is an ideal strategic fit for Valeant’s diversified portfolio of specialty products,” J. Michael Pearson, Valeant’s chairman and CEO, said in the release. “The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising near-term pipeline of innovative products. With strong brand recognition among specialist GI prescribers, a highly rated specialty sales force, and a significant product and commercial presence across the undertreated and underserved gastrointestinal market, this acquisition offers a compelling opportunity for Valeant to create a strong platform for growth and business development.”
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