Valeant Talks Takeover of Medicis: Report

ONTARIO, Canada (TheStreet) -- Valeant Pharmaceuticals (VRX), the Canadian drug company, may be interested in buying Medicis Pharmaceutical (MRX), according to a report.

Medicis makes dermatological and aesthetic pharmaceutical products. It has a market capitalization of about $2.1 billion.

Valeant has been hunting for acquisitions since it lost out in its bid to acquire Cephalon (CEPH), which was sold in May for $6.2 billion to Teva Pharmaceutical (TEVA).

Valeant reportedly also has approached Swedish specialty drug maker Meda AB about a takeover.

Valeant's approach for Medicis comes amid an investigation into death of the girlfriend of Medicis's founder and chief executive, Jonah Shacknai, The Wall Street Journal reported. Since the girlfriend's death at Shacknai's home in July, Medicis shares have been underperforming the broader market, leaving the company vulnerable to a takeover approach, people familiar with the matter told the newspaper.

Shares of Medicis finished almost 5% higher Monday to $33.63 as reports surfaced about the company's possible sale.

-- Written by Joseph Woelfel



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