Biovail, Valeant Pharma conclude merger agreement

As per the agreement, Valeant stockholders will receive, for each share of Valeant common stock outstanding immediately prior to the merger, 1.7809 Biovail common shares.

The combined company, called Valeant Pharmaceuticals International, will focus on four main areas – specialty neurology, dermatology and branded generics.

As contemplated by the merger agreement, Valeant’s board of directors declared a one-time special cash dividend of $16.77 per share to Valeant stockholders on 27 September 2010.

The Wall Street Journal quoted Biovail founder Eugene Melnyk as saying that by entering into this strictly financially driven transaction, the management of Biovail and Valeant can engineer their balance sheet and income statement and hide the fact that their strategy has not and will not be successful and that they will no longer be accountable for the misguided course upon which they embarked.

Valeant develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics.