Valeant buys rights to Infergen from InterMune

New York, Nov. 28 - Valeant Pharmaceuticals International said it has agreed to acquire the U.S. and Canadian rights to hepatitis C drug Infergen (interferon alfacon-1) from InterMune, Inc.

Valeant will pay $113.5 million in cash on closing and subsequent milestone payments of up to $22.5 million. Valeant also will acquire an estimated $6.5 million in inventory.

Closing is expected in late 2005.

"The acquisition of Infergen will have an immediate sales impact on Valeant and provide us with a valuable addition to one of our core therapeutic areas," said Timothy C. Tyson, Valeant's president and chief executive officer, in a news release.

"In addition, we intend to hire up to 50 of InterMune's sales and marketing force, which will help to provide Valeant with an immediate presence in the hepatitis C market and position us for the anticipated launch of Viramidine."

Viramidine, currently in phase 3 clinical trials, is expected to be launched in 2007.

Sales of Infergen were $22 million in 2004. For the first nine months of 2005, sales of Infergen increased by 79% to $25.3 million compared to $14.2 million for the first nine months of 2004.

Valeant expects the acquisition of Infergen to be neutral in 2005, excluding the impact of acquired in-process research and development, which is estimated to be $45 million, and modestly dilutive in 2006.

Valeant is a Costa Mesa, Calif., specialty pharmaceutical company.

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