Valeant Pharmaceuticals International has signed an agreement to acquire iNova, a private pharmaceutical group. iNova owns, develops and markets a diversified portfolio of prescription and OTC pharmaceutical products in the Asia Pacific region and South Africa.

Valeant will pay iNova shareholders $625 million upfront and up to an additional $75 million in potential milestones based on the success of pipeline activities, product registrations and overall revenue. iNova's total 2011 revenues are expected to be approximately $200 million and has an operating margin of approximately 40%. Revenues have grown at a rate of approximately 10% per annum over the last four years. The transaction is subject to certain closing conditions and post-closing adjustments, and is expected to be immediately accretive.

"This transaction not only transforms our operations in the Australian market, but provides us with a beachhead in both Southeast Asia and South Africa," stated J. Michael Pearson, chairman and chief executive officer. "iNova has a talented management team that has created a strong business operation ahead of an intended initial public offering and with the current market softness, Valeant has a unique opportunity to acquire iNova and integrate our Australian operations into the broader iNova Asia Pacific business."