Valeant to purchase Salix

After its hostile bid to buy Allergan failed, Canada’s Valeant Pharmaceuticals International has agreed to purchase Salix Pharmaceuticals for US$14.5 billion.

The transaction was approved by the boards of directors of both companies.

Raleigh, North Carolina-based Salix develops gastrointestinal market drugs and has a portfolio of 22 total products.

“Salix’s market-leading gastrointestinal franchise is an ideal strategic fit for Valeant’s diversified portfolio of specialty products,” said J. Michael Pearson, Valeant’s chairman and chief executive officer. “The growing [gastrointestinal] 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.”

The deal, which is expected to close in the second quarter of 2015, is subject to customary closing conditions and regulatory approval.

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