MONTREAL – Prolific acquirer Valeant Pharmaceuticals International Inc.’s Canadian division is going to make a move a little bit different: divest part of its aesthetics division in order to refocus the company’s operations.
On Monday, the Montreal-based dermatology company Intega Skin Sciences Inc announced it had signed a contract with Valeant Canada to get Valeant’s Groupe Cosmderme, which includes Laboratoire Dr Renaud, Pro-Derm and Premiology, three high-end medical skincare brands developed and produced in Laval, Que.
“A part of our strategy to build Intega is to aggressively look for possibilities to buy the rights to products and firms,” said Gregory Orleski, president and CEO of Intega who also worked with ICN Canada Ltd., which later became Valeant.
“I approached them saying I had been interested in purchasing the business. It had not been easy, however they finally paid attention to me and we came to a contract,” Orleski said within an interview.
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The terms of the transaction weren’t disclosed because Intega is really a private company. The amount will likely not be publicly reported by Valeant Canada or Valeant International on financial statements because the asset is below the 10 per cent consolidated revenue threshold that would result in the entity material.
However, on Monday Westmount, Que.-based Knight Therapeutics Inc. announced it had applied for a secured loan agreement with Intega for $10.5 million in order to fund buying.
In conjunction with the loan, Knight has entered into a unique distribution, licence and supply agreement to commercialize all Intega’s current and future products in Israel, Romania, Russia, sub-Saharan Africa and the Caribbean, and may also receive rights to certain future products in Canada.
Intega wouldn’t disclose whether the acquisition required additional funding.
Valeant acquired Laboratoire Dr. Renaud for around $23 million in 2009.
In October 2013, the company named the group of brands in its “cosmeceutical” division Valeant Groupe Cosmderme Inc.
Valeant says it was approached by Intega in 2015, and applied for this agreement because it is trying to narrow its dermatology focus from aesthetic dermatology and towards prescription products.
The Laval-Que.-based Valeant says it has no plans for future divestitures.
Orleski says there have been no layoffs within the deal, with 58 Groupe Cosmderme employees joining the Intega team while several senior management members and R&D staff will stay with Valeant.
“It was only some of the offer that we got, but area of the reason we opted for (Intega) was since they’re keeping the operations here, which for us was very important,” said Sbastien Beauchamp, executive director of market access and government affairs at Valeant Canada, within an interview.
This brings the entire number of Intega staff to 62 since it was founded in April 2015.
Orleski says within the next 5 years he hopes to build Intega into a leader in Canada’s dermatology space, launching a full line of retail products this year.