Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Medicis Pharmaceutical Corp    MRX   US5846903095

SummaryNewsCompany 
News SummaryMost relevantAll news 

Medicis Pharma Shares Fall on Q-Med Lawsuit

11/09/2012 | 04:03pm US/Eastern
   By Anna Prior 
 

Q-Med Inc., a division of pharmaceutical company Galderma, has sued Medicis Pharmaceutical Corp. (>> Medicis Pharmaceutical Corp) over the contracts for several dermal filler products in connection with Medicis's planned merger with Valeant Pharmaceuticals International Inc. (>> Valeant Pharmaceuticals Intl Inc).

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

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Latest news on MEDICIS PHARMACEUTICAL COR
04/22DJValeant, Ackman Propose Allergan Deal -- 6th Update
04/22DJValeant, Ackman Propose Allergan Deal -- 5th Update
04/22DJWILLIAM ACKMAN : Valeant, Ackman Propose Allergan Deal -- 4th Update
03/13DJAnacor Pharmaceuticals Swings to a Profit
2013DJValeant Swings to 3rd-Quarter Loss On Litigation Settlement, Acquisition Cost..
2013DJU.S. HOT STOCKS FUTURES : Hot Stocks to Watch
2013DJValeant to Pay Anacor $142.5 Million to Settle Disputes
2012DJGarmin to Join S&P 500 Index, Replacing RR Donnelley
2012 MEDICIS PHARMACEUTICAL CORP : Valeant Pharmaceuticals Announces New Management A..
2012 MEDICIS PHARMACEUTICAL CORP : Valeant Pharmaceuticals Receives FTC Clearance For..
Advertisement
Dynamic quotes  
ON
| OFF