ALISO VIEJO, Calif. (AP) -- Valeant Pharmaceuticals Inc. said Wednesday it will buy privately held Coria Laboratories Ltd. for $95 million in a move to expand its dermatology business.
Under the deal, Valeant will buy Coria from its parent company DFB Pharmaceuticals Inc. and other shareholders. The buyout is expected to boost earnings in 2009.
Valeant currently has a mix of products for neurology, dermatology, and infectious diseases and the Coria buyout adds several skin care products for dermatitis and acne.
"Valeant is committed to growing our dermatology franchise and this acquisition is a key step in transforming this business in the U.S. and gaining the critical mass and profitability we need," said Chairman and Chief Executive J. Michael Pearson in a statement.
The Coria buyout comes on the heels of Valeant's move to sell most of its European operations. It received $425 million to sell Eastern and Western European businesses to Meda AB of Sweden, though it retained Central European businesses.
In February the company sold its Asia Pacific companies and then slashed its work force almost in half. It still plans on selling its African and Middle Eastern subsidiaries.
Shares of Valeant fell 31 cents to $19.50 in morning trading.