Valeant Increases Offer for Obagi Medical Products After Merz Pharma Bid

Abstract

Valeant Pharmaceuticals International has made a sweetened offer to acquire Obagi Medical Products, a California-based developer of physician-dispensed skincare systems, for US$24 per share. The company revised its March 2013 offer of US$19.75 per share after Obagi received an unsolicited bid of US$22 per share from Germany’s Merz Pharma. The Board of Directors of Obagi has approved the revised offer, which values the company at approximately US$418 M. Valeant has built its dermatology franchise via M&A, most notably acquiring Medicis Pharmaceutical for US$2.6 B in December 2012.