Michael Pearson, the CEO of Canadian drug maker Valeant Pharmaceuticals has spoken publicly about their purchase of Rochester-based Bausch + Lomb for the first time since the deal was announced Monday.
Pearson says the deal brings an opportunity for Valeant to immediately grow their presence in the global eye health market.
“There are a number of demographics underpinning the market growth we continue to see around the world. In addition to an aging population, which will only increase in the coming years, there is an increased prevalence of diseases that affect eye health, including diabetes and cataracts.”
The deal for nearly $9 billion will see Bausch + Lomb keep its name and simply become a division of Valeant.
Roughly half of the payment will go investment firm Warburg Pincus, which heads the investment group that owns Bausch + Lomb. Pearson says the remaining sum will go toward paying the eye-care company’s debt.
“We’ve agreed to acquire Bausch + Lomb for a total consideration of $8.7 billion. We’ll pay approximately $4.5 billion to existing shareholders and take on approximately $4.2 billion of new debt.”
Pearson says it’s a move in the right direction for Valeant.
“We’ve made no secret of the fact that we find the eye health market to be an extremely attractive therapeutic area. And while we have been slowly building up our presence here in the US, this transaction immediately puts us in a leading position around the world.”
The deal will see several members of Bausch + Lomb’s executive team transition to become part of Valeant Pharmaceuticals.
However, it is not yet known what the purchase will mean for the rest of the company’s employees.
“In terms of integrating our personnel, we intend to select the best of the best between the two companies in order to build a stronger organization,” Pearson says.
The transaction is expected to be closed in the third quarter.