Under the terms of the pact, Valeant is responsible to pay a sum of $76m and including milestones and royalties of $130m over the next 18 months to Meda.
Additionally, Valeant expects to pay double digit royalty rate on net sales of Elidel, Xerese and Zovirax including additional minimum royalties of $120m during 2013 – 2015.
Valeant has exclusive rights to Zovirax in the US and Canada.
Furthermore, both the parties have signed a development deal for future life cycle management of both Elidel and Xerese.
Meda CEO Anders Lonner said Meda will concentrate the marketing to the respiratory/allergy area with Astepro and their new product Dymista, which is in late registration phase with the FDA.
Valeant chairman and CEO Michael Pearson said the addition of a brand such as Elidel is a significant enhancement to their growing North American dermatology portfolio.