Valeant Pharmaceuticals announced on Monday, March 16th that is was boosting the price on its deal to buy Salix Pharmaceuticals. The statement noted that Valeant was increasing the price of its offer from $158 to $173 a share, or a total enterprise value of $15.8 billion.

The new agreement sweetening the deal is designed to top a cash-and-stock bid thrown in the ring last week by Endo International. That bid was worth about $172.50 per share as of Friday, but could take longer to close and still requires a vote from Endo shareholders.

valeant pharmaceuticals

More details on Valeant’s new offer for Salix

The new deal also increases the breakup fee it would owe Valeant if Salix walked away to $450 million, which adds to the total if Endo wants to come back with a higher bid.

Salix also agreed to change the date through which Valeant must keep its offer on the table from August 1st to May 1st.

Statement from Valeant and Salix CEOs

“We continue to be very excited about the combination of our two companies and we are committed to getting this deal done,” said J. Michael Pearson, chairman and chief executive officer of Valeant.  “This revised offer provides Salix shareholders with all-cash at a significant premium and the certainty to close by April 1.  By offering a significant premium with a 100% cash offer, eliminating market and company equity risk that could arise from other non-cash offers with a 4+ month closing timeline instead of a closing by April 1st, our new arrangement creates significant shareholder value for Salix.  In addition, the transaction remains modestly accretive in 2015 and will be more than 20% accretive in 2016.”

Thomas W. D’Alonzo, chairman of the board and acting chief executive officer of Salix, stated, “We are pleased that the enhanced offer price recognizes the value of Salix as the leading gastrointestinal specialty pharmaceutical company and delivers to our stockholders all cash consideration in the near future.”