March 13 (Reuters) - Canada’s Valeant Pharmaceuticals International Inc said it will buy some assets of Austrian pharmaceutical company Gerot Lannach, to boost its presence in Central and Eastern Europe.
These assets of the company, which makes generic branded drugs, generated revenue of about $55 million in 2011.
Under the deal, Valeant will acquire the assets for less than three times sales, with up to an additional $20 million in milestone payments, the company said in a statement.
Valeant will also enter into a 10-year exclusive supply agreement for the acquired products and will market other Gerot Lannach products in Southeast Asia and Latin America.
The Canadian drug maker has been increasing revenue, mostly through acquisitions, since Biovail Corp, Canada’s largest publicly owned pharmaceutical company, took over U.S.-based Valeant and assumed the Valeant name in September 2010.
Shares of Valeant closed at C$54.27 on Monday on the Toronto Stock Exchange.