Biotech Values

[DewDiligence]

VRX sells aesthetic-medicine products to Nestlé for $1.4B:

http://online.wsj.com/news/articles/SB10001424052702303633604579589253541183382

In a statement Wednesday, Vevey-based Nestlé said it was acquiring the U.S. and Canadian commercial rights to five aesthetic dermatology products owned by Valeant. Nestlé had previously sold the brands outside of North America.

The products covered by the deal include Restylane, Perlane and Emervel, which are used to fill wrinkles and increase the fullness of lips. The deal also covers Dysport and Sculptra, which are used to remove smile lines, as well as other medical and aesthetic treatments.

This is (IMO) a preemptive move related to VRX’s offer to acquire AGN insofar as VRX would have to divest these products for anticompetitive reasons if it were successful at acquiring AGN. Dysport is a Botox-like botulinum toxin that VRX picked up in the 2012 acquisition of Medicis (#msg-79186818), and Restylane/Perlane are dermal filers (similar to AGN’s Juvederm) that also came from Medicis.