Valeant to acquire OTC acne treatment, certain assets from University Medical Pharma

Canada-based Valeant Pharmaceuticals said that it has agreed to acquire certain assets and AcneFree, an over-the-counter (OTC) acne treatment from the US-based specialty pharmaceutical company, University Medical Pharmaceuticals.

Valeant said that it will pay up to $64m for the deal along with potential milestones based on future revenue targets attainment.

The total revenue in 2011 from the acquired assets was about $32m, the company said.

Valeant Pharmaceuticals chairman and chief executive officer Michael Pearson said that the addition of a leading OTC acne treatment will help firm expand its OTC business.

"We believe that we can build upon our success with CeraVe in the retail channel through increased offerings to consumers. These new products will be immediately accretive to our operations and have not been factored into our 2012 financial guidance," added Pearson.

The deal which is likely to close by the mid-year, is subject to certain closing conditions that includes expiration of requisite regulatory waiting periods.

AcneFree skincare line includes various products under categories of sensitive skin, moderate acne and severe acne.