Meda and Valeant sign collaboration agreement

Meda and Valeant sign collaboration agreement

 

Meda and Valeant (NYSE: VRX) (TSX: VRX) have entered into a
collaboration agreement. Meda has out-licensed exclusive rights for
Elidel (pimecrolimus 1% cream) and Xerese (acyclovir and hydrocortisone
cream) to Valeant for the U.S., Canada and Mexico. The parties will
collaborate on life cycle opportunities for both products.

Meda will receive initial payments of 76 MUSD, whereof about half would
be recognized as income over a longer period. Meda will also earn long
term double digit royalties on net sales for Zovirax cream and ointment
(treatment of cold sores and genital herpes), Xerese, Elidel and their
respective product life cycle developments in North America. Until the
end of 2012, Meda estimates to receive milestones and royalties totaling
approximately 130 MUSD. Thereafter, royalties are due as long as the
products are commercialized. During the years 2013-15, royalties will
amount to at least 120 MUSD.

Meda and Valeant have done several strategic deals for which both
companies have gained valuable synergies; Potiga (retigabine), Meda's
acquisition of Valeant's European operations in 2008 and inlicensing of
Acnex in Europe.

“Today's deal will maximize the value of the actual products. Valeant
has a strong dermatology franchise in North America and can support
Elidel and Xerese in the best way. Meda will concentrate the marketing
to the respiratory/allergy area with Astepro and our new product
Dymista, which is in late registration phase with the FDA. The deal is
expected to be accretive to Meda's earnings and margins - both in the
short and long term”, says Anders Lönner, CEO of Meda.

For further inquiries, please contact:

Anders Larnholt, Vice President Corporate Development & IR ph: 46
709-458 878