Valeant to Acquire Australia-based iNova
Valeant Pharmaceuticals announced today the intention of acquiring Australia-based iNova. A pharmaceutical group whose operations manufacture prescription and over-the-counter (OTC) products for Australia, New Zealand, Southeast Asia and South Africa, iNova’s diversified market will benefit Valeant in future global sales.
iNova is known for its prescription and OTC pharmaceutical products, specifically weight management brand Duromine and leading OTC cold and cough brands Difflam and Duro Tuss.
Shareholders of iNova will be paid A$625 million upon the acquisition agreement with a potential for an additional A$75 million if certain milestones are met. Valeant expects iNova’s revenue in 2011 to reach A$200 million with an estimated operating margin of 40 per cent. iNova has seen company success in recent years with a revenue growth rate of 10 per cent annual in the past four.
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"This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa," stated J. Michael Pearson, chairman and chief executive officer. "iNova has a talented management team that has created a strong business operation ahead of an intended initial public offering and with the current market softness, Valeant has a unique opportunity to acquire iNova and integrate our Australian operations into the broader iNova Asia Pacific business."
This is another number in the long list of acquisitions Valeant has entered into this year, showing that the company has serious plans for growth. Creating a world-wide pharmaceutical company, Valeant’s entrance into other markets is expected to produce a stronger company and make Valeant more competitive against other global pharmaceutical rivals.