Valeant Pharmaceuticals International, Inc. / Dow Pharmaceutical Sciences, Inc.

Dermatology — Acne Vulgaris and Topical Pipeline

$4.0B U.S. annual cost of acne (AAD estimate, includes treatment + lost productivity)

Disease Overview

Acne vulgaris is the most common skin disorder in the U.S., affecting ~50 million Americans annually with peaks in adolescence but persistence into adulthood for ~15% of women. Topical combination therapies (clindamycin/benzoyl peroxide, retinoid/benzoyl peroxide) form the bedrock of mild-to-moderate disease management; Acanya combined clindamycin 1.2% with benzoyl peroxide 2.5% in a single dispenser.

Competitive Landscape

At deal close (Jan 2009), the U.S. topical acne market was led by Galderma (Differin/adapalene, Epiduo), Stiefel/GSK (Duac), Medicis (Solodyn oral minocycline), and Bradley/Coria (Vanos and other topicals — itself recently acquired by Valeant). Acanya, FDA-approved Nov 2008 and developed by Dow with Coria as commercialization partner, slotted into the clindamycin-BPO combination segment competing directly with Stiefel's BenzaClin and Duac. The deal gave Valeant a vertically integrated dermatology platform: Coria's commercial infrastructure plus Dow's topical formulation R&D and a five-asset pipeline targeting rosacea, severe acne, fungal infections, and warts. Three pipeline assets were Phase 2 with Phase 3 entries planned in 2009. Strategically, this deal — paired with the earlier Coria acquisition — established the Valeant dermatology franchise that later became Bausch Health's growth engine and the source of the Philidor/Salix-era controversies. Pearson framed Dow as 'solidifying Valeant's future as a leading [dermatology] company'.