Corporate News: Valeant In Talks To Buy Actavis
The Drug Maker Valeant Pharmaceuticals International Inc is negotiating with Actavis Inc for a possible acquisition. Valeant is thinking about acquiring Acatavis for well over $13 billion dollars. This is significant because Valeant would be essentially taking over their main rival. If this happens it would count as one of the largest health care deals this year. Valeant is offering over $13 billion dollars because that is Actavis’s current market value plus a premium.
Acatavis is the third largest generic drug company and has generated revenue of close to six billion dollars last year alone. Most of their income comes from unbranded, generic goods however they also sell branded drugs specifically for women’s health.
On the other hand, Valeant produces both generic and branded drugs along with over the counter drugs. They also specialize in skin care.
Although this deal is very unstable, there is still a chance that the two companies will reach an agreement. This is extremely relatable to me because this acquisition could potentially lead to cheaper products. Just recently I had to purchase generic allergy medication.