NEW YORK (AP) – Canadian drugmaker Valeant Pharmaceuticals International Inc. said it will pay $625.1 million to buy iNova Pharmaceuticals of Australia.

Valeant said it will pay 625 million Australian dollars ($625.1 million) upfront, and the deal also provides for up to $75 million in potential milestone payments. Privately held iNova sells prescription and over-the-counter products in Australia, New Zealand, Southeast Asia, and South Africa. Its brands include weight loss and cough and cold products. Valeant said iNova is expected to report about $200 million in revenue in 2011, and its sales have been growing at a rate of 10 percent per year over the last four years.

Valeant expects the purchase to add to its profit immediately. The Mississauga, Ontario, company has reported $1.77 billion in revenue over the first three quarters of 2011.

Date: November 22, 2011
Source: Associated Press