MONTREAL — Valeant Pharmaceuticals International Inc. expects to strengthen its position as a global leader in dermatology products with the $2.6-billion acquisition of U.S.-based Medicis Pharmaceutical Corp.Valeant has agreed to pay $44 per share for Medicis in a $2.6-billion cash deal, the Quebec-based company said Tuesday. That’s a 39% premium over Friday’s closing price of $31.87 for the Scottsdale, Ariz. company.Shares in Valeant surged 14.6%, or up $7.35, to $57.82 in morning trading on the Toronto Stock Exchange.Valeant CEO Michael Pearson said his company had been looking at acquiring Medicis for the last 18 months.“Importantly, this combination represents a significant next step in our journey to become a global leader in dermatology, strengthening our presence in medical dermatology and bringing us to critical mass in esthetics,” Pearson said during a conference call.This combination represents a significant next step in our journey to become a global leader in dermatology, strengthening our presence in medical dermatology and bringing us to critical mass in estheticsMedicis’ portfolio complements Valeant’s portfolio, he said, citing the areas of acne medication and injectable dermal fillers in esthetic products.“We look forward to leveraging Medicis, a well-known and respected name in dermatology, to drive long-term growth,” Pearson told analysts.The boards of both companies have approved the deal but the takeover needs the approval of Medicis shareholders as well as regulatory clearance. The companies hope to complete the transaction in early 2013.[np-related]The combined company’s commercial dermatology operations would be based in Scottsdale and will operate under the Medicis name, the companies said. Its research and development operations would operate in Canada, Arizona and California. Corporate support functions would be based mostly in New Jersey.The chairman and CEO of Medicis, Jonah Shacknai, called the offer compelling and said the combined portfolio of products under the Medicis name would be enable the combined company to capitalize on opportunities in the markets for dermatology and esthetic treatment products.Medicis’ prescription brands include Solodyn, Perlane, Ziana and Dysport.Valeant said it expects the deal to immediately add to its earnings and begin producing annual cost savings of at least $225-million within six months of the deal closing.Pearson said when Valeant starts integrating Medicis’ personal, “we intend to select the best-of-the-best in order to build a stronger organization.” Valeant, Canada’s largest publicly traded drug company formed from the combination of California-based Valeant and the former Biovail, reported a $21.6-million net loss in the second quarter, largely as a result of restructuring and acquisition charges.The results also included a $53.6-million charge related to the settlement of a class-action anti-trust complaint.Valeant has now made more than a dozen acquisitions this year, including iNova, which sells and distributes a range of prescription and over-the-counter products in Australia, New Zealand, Southeast Asia and South Africa. It also acquired Dermik, a dermatological unit of Sanofi in the U.S. and Canada that manufactures, markets and sells a range of therapeutic and aesthetic dermatology products.Last year, it bought Edmonton-based Afex Life Sciences, maker of the over-the-counter cold and flu remedy Cold-FX.In April, Valeant announced it would move its global headquarters to Quebec to focus on over-the-counter dermatology products. It’s also setting up a research and development centre for consumer dermatology in Laval, which is north of Montreal.Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of products primarily in the areas of neurology, dermatology and branded generics.The Canadian Press
The erosion of free trade with the U.S. and Mexico would be bad for Canada’s largest airline, Air Canada’s chief executive said Tuesday.“We see the economic value and the economic contribution that NAFTA has facilitated,” Calin Rovinescu told the Forum of the Americas in Toronto.Although bilateral air agreements are not part of the agreement, he said the largest foreign carrier in the United States by flight frequencies and cities served has relied significantly on connecting and business traffic coming across the border.Rovinescu said free trade has been good and will continue to be beneficial for Canada and the United States, in particular.“I would be very concerned to see a further erosion of this,” he said, referring to NAFTA.“My confidence is there that the negotiators…will come to something sensible, but we certainly have seen the benefits of this.”The 23-year-old agreement faces an uncertain future after U.S. President Donald Trump launched renegotiations with a threat to tear up a deal he describes as being bad for the United States.Rovinescu said Air Canada (TSX:AC) makes a $75 billion to $100 billion annual economic contribution when factoring in the model that estimates the economic benefit from airlines equalling five to seven times revenues.“Serving those 70 or so cities in the United States has enabled us to make more than our fair share of economic contribution,” he added in a question session with Canadian Chamber of Commerce president Perrin Beatty.Air Canada’s CEO added that he’s disappointed by Boeing’s trade action against Bombardier’s C Series aircraft, which the airline has ordered.He said the C Series is the first new innovation in the smaller narrowbody segment in more than two decades that is shaking up the 100- to 150-seat airplane market.Airbus and Bombardier recently announced that the European aircraft manufacturer will purchase a majority stake in the C Series program and build an assembly line at its plant in Mobile, Ala., for the U.S. market. The move is aimed at allowing the aircraft to avoid the imposition of export duties.
FILE – In this Jan. 2, 2014 file photo, Panama Canal’s administrator Jorge Quijano gives a press conference in Panama City. Since the crisis erupted regarding the cost of finishing the Panama Canal’s expansion, the nation has rallied almost unanimously behind the engineer, thrusting him into the media spotlight to defend the canal, which is almost synonymous with the nation’s identity. They applaud him for standing up to public attacks by contractors that he likens to “extortion” and “terrorism.” (AP Photo/Arnulfo Franco, File) by Juan Zamorano, The Associated Press Posted Feb 12, 2014 7:39 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email PANAMA CITY – Panama Canal Administrator Jorge Quijano said Wednesday the agency has reached tentative agreement with contractors on some of the issues that have stalled work on the biggest expansion of the waterway in a century.But Quijano also told a meeting of Panama’s Chamber of Commerce and Industry that the Panama Canal Authority might take over the project if no final agreement is reached this week.The canal chief said he spoke by telephone Tuesday with executives from Grupos Unidos por el Canal, the consortium led by Spain’s Sacyr SA and Italy’s Salini Impreglio SpA. It has been seeking to have the canal authority pay for $1.6 billion in cost overruns on what had been planned as a $3.1 billion chunk of the canal project.“We had agreements in principle on several of the topics,” he said, without giving details. “We still have some topics to resolve and we are working in that direction.”“That is not to say that we have abandoned the other alternative, which is that we take over the work ourselves,” said Quijano. “We are preparing more each day in case that is necessary.”Sacyr declined Wednesday to comment on the report of agreements in principle.Quijano said that one question to be resolved is if insurer Zurich American, which holds a guarantee bond of at least $450 million, will play a role in financing renewed work.“Zurich has not yet expressed itself in a conclusive way. We know that they have the willingness to do so,” he said.After Quijano spoke, Sacyr’s shares in Madrid’s stock market rallied 4.7 per cent on Wednesday to close at 4.03 euros per share.Later Wednesday, Quijano told Panama’s legislature that without Zurich’s financial participation “a possible agreement could fall apart.”“We are searching for a solution that is good for the country,” he said.The dispute threatens to delay a project that has led ports and shipping companies around the globe to make costly new investments to take advantage of the ability to move larger ships through a waterway that already handles 5 to 6 per cent of world commerce.The canal authority and the construction consortium blame each other for the overruns. They were negotiating how to pay for the unplanned extra costs when talks broke down.Other foreign contractors and project managers have expressed an interest in completing the 30 per cent of work that remains on the third canal lock, according to canal officials.___Associated Press writer Jorge Sainz contributed from Madrid. Panama Canal chief reports agreements in principle to solve some parts of expansion dispute