Valeant Pharmaceuticals International, Inc. announced that its subsidiary, Biovail Laboratories International SRL (BLS), has signed agreements to acquire all US and Canadian rights to non-ophthalmic topical formulations of Zovirax from GlaxoSmithKline (GSK) for $300 million. The transaction significantly increases profitability of the brand for BLS which had previously been the exclusive distributor in the United States, and expands BLS' geographic rights to include Canada. The transaction is subject to customary closing conditions, including Hart-Scott-Rodino regulatory clearance in the United States.

“We believe that Zovirax is a strong brand with continuing growth opportunities,” said J. Michael Pearson, chief executive officer. “The current distribution agreement between GSK and BLS was problematic for both companies and this new arrangement should solve this issue for both organizations. We believe that our sales and marketing organizations in the United States and Canada have the ability to revitalize and grow the brand.”

Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics.