Valeant Pharmaceuticals has entered into an agreement to acquire PreCision Dermatology, Inc. for $475 million in cash, plus an additional $25 million payable upon the achievement of a sales-based milestone. PreCision develops and markets dermatology products such as Locoid, Hylatopic, Clindagel and BenzEFoam.
“PreCision Dermatology has a wide range of medical dermatology products, treating a number of topical disease states such as acne and atopic dermatitis, and should bring tremendous value to Valeant’s medical dermatology portfolio,” stated J. Michael Pearson, chairman and chief executive officer of Valeant. “Furthermore, PreCision’s diversified portfolio of products enjoys high physician loyalty, premium product quality and lifecycle management opportunities that will enhance our future growth strategies. We believe this acquisition will strengthen Valeant’s product portfolio and solidify our position as a leader in dermatology.”
PreCision also markets PrecisionMD, which focuses on physician-dispensed products. The company is expected to generate approximately $130 million in revenue in 2014.