Valeant Pharmaceuticals International announced that it has entered into an agreement with Amarin Corporation, plc to acquire its US-based subsidiary, Amarin Pharmaceuticals, Inc. and all of its US products. The acquisition expands Valeant's neurology business in North America and provides a platform for future growth.

Under the terms of the transaction, Valeant will pay $38.0 million in cash up front for the rights to Amarin's product portfolio, which includes Permax and a primary care portfolio with a broad range of indications.

Valeant Pharmaceuticals also acquires in the transaction the rights to Zelapar, an in-licensed, late-stage candidate for the treatment of Parkinson's disease. Amarin has received an approvable letter from the US Food and Drug Administration (FDA) for Zelapar, subject to the completion of two safety studies, which Amarin will fund and expects to complete in 2004. The agreement calls for Valeant to make additional milestone payments of up to $8 million to Amarin based on the successful completion of the studies and final approval by the FDA of Zelapar. In addition, Valeant will make a milestone payment of $10 million to the developer of Zelapar upon the attainment of specified sales thresholds.

Valeant expects to record a charge of approximately $10 million for in- process research and development costs associated with Zelapar. Excluding the in-process R&D charge, the transaction is expected to be earnings neutral in 2004 and accretive to earnings thereafter.