Valeant Pharmaceuticals International Inc. is in advanced negotiations to acquire Egyptian drugmaker Amoun Pharmaceutical Co. because it seeks to expand into emerging markets, based on people with understanding of the matter.
The drugmaker, located in Laval, Quebec, may reach a contract with Amoun\’s shareholders in the coming weeks, the folks said, asking not to be identified as the information is private. No ultimate decision has been made and then any deal may still fall apart, i was told that.
A sale of Amoun could value the company at US$700 million to US$800 million, people familiar with the matter said in May.
Valeant needs to become among the world\’s biggest drug companies, mostly through acquisitions, amid a flurry of transactions within the pharmaceuticals and biotechnology industries. Amoun is one of the largest drugmakers in Egypt while offering both veterinary and human medicines in the region.
Valeant is consistently searching for \”good deals,\” Ceo Michael Pearson said within an interview in May. Captured the company beat out rival Endo International Plc to purchase Salix Pharmaceuticals Ltd. for US$11.1 billion. The firm spent much of 2014 embroiled in an unsuccessful hostile takeover battle for botox-maker Allergan Inc.
A spokeswoman for Valeant declined to comment, while a representative for Amoun didn\’t react to requests for comment.
Amoun\’s shareholders include emerging market-focused private-equity arms of Capital Group, Concord International Investments, and also the Rohatyn Group, the New York-based fund that decided to acquire Citigroup Inc.\’s buyout business in 2013. The investors bought Amoun for about US$450 million in 2006.
— With assistance from Tamim Elyan in Cairo and Cynthia Koons in New York.