Biovail, Valeant Pharma agree to merge

[June 21, 2010]  NEW YORK (AP) -- Canadian drugmaker Biovail Corp. and Valeant Pharmaceuticals International are forming a new company under the Valeant name.

The companies had $1.65 billion combined in revenue in 2009. They say their size, financial strength and product lines will allow for significant growth, including a bigger presence in North America and other countries. Biovail of Toronto makes the antidepressant Wellbutrin XL and extended-release pain drug Ultram ER. Valeant, based in Aliso Viejo, Calif., sells treatments for chronic illnesses and generic drugs.

Both companies' boards have approved the combination. Valeant shareholders will get a dividend of $16.77 and 1.7809 shares of Biovail when the deal closes. Biovail and Valeant will divide leadership of the company, which will be based in Mississauga, Ontario.

[Associated Press]

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