Valeant forays into gastrointestinal drugs; buys Salix for US$10bn

Valeant forays into gastrointestinal drugs; buys Salix for US$10bn

558
SHARE

Canada’s Valeant Pharmaceuticals is buying Salix for just over US$10bn, expanding the company’s reach into gastrointestinal (GI) drugs. The US-based Salix is best known for its irritable bowel syndrome drug Xifaxan, and specialises in producing treatments for a range of stomach illnesses. The deal represents Valeant’s first foray into the GI market, which it says is worth around US$5bn/y in the US and is growing by around 5%/y. By merging its administration and R&D efforts with Salix, the company expects to save more than US$500m/y within just six months of completion, which is scheduled for Q2 2015.