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April 1 (Reuters) - Canada’s Valeant Pharmaceuticals International Inc completed its $10.96 billion purchase of Salix Pharmaceuticals Ltd, the acquisitive company said on Wednesday.
Salix, which specializes in gastrointestinal drugs such as Xifaxan, is Valeant’s biggest purchase, and provides it with a new therapeutic business.
Chief Executive Michael Pearson said earlier this year that Valeant was eyeing smaller deals to build on its acquisitions of Salix and assets of Dendreon Corp.
The company outbid Endo International Plc for Salix.
Last November, Salix said supply levels for Xifaxan and other drugs were higher than it had indicated, forcing it to slash its full-year earnings forecast.
Pearson said Valeant would reduce the five to nine months of Salix inventory to two months or less by the end of 2015, which will cut revenue by $500 million. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Nick Zieminski)