Valeant Pharmaceuticals International and Salix Pharmaceuticals have announced that they have entered into a definitive agreement under which Valeant will acquire all of the outstanding common stock of Salix for a total enterprise value of approximately $15.8 billion.
Salix Pharmaceuticals is a widely recognized gastrointestinal market leader with a portfolio of 22 total products, including well-known prescription brands as well as a strong near- term pipeline of innovative new assets.
The combination is expected to yield greater than $500 million in annual cost savings from the cost base of the combined company. Synergies are expected to be achieved within six months of close, primarily from reductions in corporate overhead and R&D rationalization. Valeant and Salix will determine how best to integrate the two companies to leverage the combined strengths of both while ensuring a smooth and orderly transition.