Valeant International is considering to offer an acquisition price of $150 per share for Salix Pharmaceuticals
Valeant Pharmaceuticals secured a financing for a potential acquisition of Salix Pharmaceuticals, according to Bloomberg based on information from people familiar with the situation.
The Canadian multinational, specialty pharmaceutical company is exploring the possibility to takeover Salix Pharmaceuticals after failing to strike a deal to purchase Allergan.
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According to the sources, Valeant International is considering to offer an acquisition price of $150 per share for Salix Pharmaceuticals, which makes drugs for the treatment of gastrointestinal disorder such as ulcerative colitis.
Valeant International is wary of paying over price for Salix
One of the people familiar with the matter said Valeant Pharmaceuticals is wary about paying over price for the shares of Salix Pharmaceuticals. Another person said there is no guarantee that a deal would be reached between the companies.
The stock price of Salix Pharmaceuticals increased 4% to $149.18 per share today. The company has approximately $9 billion market capitalization.
There is a possibility that Valeant Pharmaceuticals would explore alternative acquisitions, according to the person. It is expected to face competing bid for Salix Pharmaceuticals. There were reports that Shire PLC is interested to purchase Salix Pharmaceuticals.
Last month, Mike Pearson, CEO of Valeant Pharmaceuticals stated that the company is looking at more than 100 smaller acquisitions. He said, “Our business development activities will remain a priority for 2015, and we expect a steady flow of small- and medium-size deals to continue.”
Valeant Pharmaceuticals is the lead bidder for Dendreon
Valeant Pharmaceuticals recently announced that it remains the lead bidder for Dendreon Corporation including its immunotherapy treatment, Provenge.
The company signed a stalking horse asset purchase agreement to acquire the worldwide rights to Provenge and certain assets of Dendreon Corporation.
Valeant International raised its proposal to acquire Dendreon to $400 million in response to competing bids. The company originally proposed an acquisition price of $296 million. It is entitled to a break-up fee and expense reimbursement as the stalking horse bidder.
The shares of Valeant Pharmaceuticals gained almost 2% to $167.50 per share today.