Valeant Pharma acquires 19.9% minority equity investment in Brazilian biotech
In return for the ownership, for which Valeant paid less than $10 million, Valeant will have representation on Pele Nova's board of directors, a reduced royalty rate for Regederm, rights to all future products in Brazil and the first right of refusal for global product rights.
Regederm, a biologic wound healing product, was recently approved in Brazil and is expected to launch in April.
"We are excited about another unique opportunity in Brazil," said J. Michael Pearson, chairman and CEO of Valeant. "Our investment in Pele Nova follows the successful approval for Regederm, originally licensed by Instituto Terapeutico Delta, a company that was acquired by Valeant in 2010, and is expected to provide us with a potential pipeline of biologic compounds in the future."