DT News - Canada - OraPharma changes ownership again

Dental Tribune International

Thu. 21 June 2012

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MONTREAL, QUEBEC: In its eighth acquisition this year, Valeant Pharmaceuticals International has purchased OraPharma, a company specialized in oral therapeutic products, from private equity firm Water Street Healthcare Partners in Chicago in the U.S.

The transaction is estimated to be worth U.S.$321 million and expected to close at the end of this month, both parties said. It will add revenues of U.S.$95 million to Valeant's current business, according to reports.

OraPharma, which is based in Warminster, Pa., specializes in locally administered antibiotics for use in periodontal treatment. Its ARESTIN microsphere delivery system, launched in 2001 and available in major markets worldwide, is indicated for the reduction of pocket depth in patients with adult periodontitis.

Water Street bought the company from Johnson & Johnson last year, which had purchased OraPharma in 2002. The deal was overshadowed by a legal dispute between J & J and Oral Cancer Prevention International, which sued the healthcare products giant for backing out of a sales contract, according to which the U.K. company's oral cancer test kit was to be distributed by OraPharma, by selling it to Water Street.

Valeant chairperson and CEO J. Michael Pearson commented that the recent purchase will help his company to enter a new attractive market segment with a strong, established sales force and provide additional opportunities for cross-selling its current product line. The Montreal-based drugmaker currently manufactures and distributes a number of pharmaceutical products for use in various fields of medicine, including neurology and dermatology.

Analysts and shareholders reacted cautiously to the announcement, despite a positive outlook regarding the company's financial results this year. According to reports, Valeant and its subsidiaries achieved record sales of U.S.$2.25 billion in 2011.