Valeant Pharmaceuticals (VRX) on Monday announced a deal to acquire PreCision Dermatology for $475 million in cash, sending Valeant stock lower.
The deal is expected to close in the first half of the year, and Valeant will pay an extra $25 million if PreCision hits a "sales-based milestone," Valeant said in a press release.
Shares of Valeant, one of Canada's biggest drugmakers, dipped about 2% on the stock market today.
Cumberland, R.I.-based PreCision Dermatology is a skin care and dermatology company, with products that include acne treatments like Minocin and Tretin X.
The company, with about 175 employees, expects 2014 sales of $130 million, according to Valeant.
Valeant in August closed its acquisition of Bausch & Lomb, one of a series of deals the company has made to diversify its business in the U.S., CEO J. Michael Pearson told analysts on a conference call in October.
At that time, prescription dermatology sales accounted for 20% of Valeant's U.S. business, Pearson said.
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