A Valeant offer for Afexa Life Sciences

Afexa Life Sciences, the maker of Cold-FX, finds its white knight.

Aug 30, 2011  

by Max Fawcett

by Max Fawcett, Managing Editor

Last week, Edmonton’s Afexa Life Sciences announced that it was looking for a so-called white knight to save it from a hostile takeover bid from Paladin Labs. Today, they got it. Valeant Pharmaceuticals International – the company formerly known as Biovail – made a friendly bid on Tuesday, offering $76 million for the maker of Cold-FX. That bid is substantially higher than Paladin’s $56.7 million offer.

Valeant chairman and CEO Michael Pearson announced that his company’s bid has the full support of Afexa’s management team and board of directors. He described the deal as “a transaction that we believe should deliver significant benefits to our customers, employees and shareholders.”

Afexa and Valeant have agreed to a 30-day “go shop” period during which Afexa can continue to solicit new bids. Under the terms of the agreement, Valeant has the right to match any new bid.

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