By Anna Prior
Q-Med Inc., a division of pharmaceutical company Galderma, has
sued Medicis Pharmaceutical Corp. (MRX) over the contracts for
several dermal filler products in connection with Medicis's planned
merger with Valeant Pharmaceuticals International Inc. (VRX).
Medicis shares recently fell 3.3% to $41.91 on heavy volume as
investors worried about the impact the lawsuit could have on the
merger. The stock has risen 26% for the year, jumping 38% after
Valeant announced a $44-a-share offer price.
In its quarterly filing, Medicis said Q-Med is alleging breach
of obligation regarding its licensing and contracts for Restylane
and Perlane, and it has the right to withhold consent to a
change-of-control of Medicis that would result in a transfer to
Valeant of the exclusive rights to market and sell the dermal
filler products.
"We think their position is without merit," said Laurie Little,
vice president of investor relations for Valeant. "We're going to
go ahead and vigorously defend ourselves."
Medicis also said in the filing that the merger agreement
doesn't require the consent of Q-Med, and Ms. Little added that at
this point, Valeant is still moving forward with the
transaction.
In September, Valeant agreed to buy Medicis for $2.6 billion,
the latest in a string of acquisitions that have transformed the
Canadian drug maker into a multibillion-dollar global company.
Valeant focuses on branded pharmaceuticals, branded generics and
over-the-counter products, and it specializes in neurology and
dermatology.
Write to Anna Prior at anna.prior@dowjones.com
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