The decision to withdraw the proposal follows the recent announcement that Valeant Pharmaceuticals International increased its offer to acquire Obagi from $19.75 to $24.00 per share in cash, pursuant to an amendment to the Valeant and Obagi Agreement and Plan of Merger, dated March 19, 2013.
"Obagi was an opportunity worth pursuing given its complementary fit with Merz's portfolio of injectables," said Philip Burchard, CEO of Merz. "However, Merz is a disciplined buyer and at this level the economics of such a transaction do not meet our requirements. We look forward to exploring other acquisition opportunities that fit our strategy. In addition, we will build on Merz's strong position in the markets we serve and continue to invest in our own R&D."