Pharma BD Deal Intelligence

Valeant Pharmaceuticals International, Inc. / Xcel Pharmaceuticals, Inc.

2005 · Acquisition/Merger · $280M · Complete

WRONG BY 38 POINTS

Legacy neurology products became durable but minor tail assets; the deal's marquee pipeline bet (retigabine/Potiga) reached FDA approval in 2011 but was commercially withdrawn worldwide in 2017 after serious safety warnings.

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The coverage arc

Feb 02, 2005 socaltech.com Neutral

Valeant Pharmaceuticals agreed to acquire San Diego-based Xcel for $280 million in cash plus assumption of $44 million in debt, in a deal aimed at boosting its…

Feb 07, 2005 Orange County Business Journal Bullish

CEO Timothy Tyson said "The Xcel acquisition provides Valeant with access to an excellent market product portfolio and a pipeline product with significant…

Aug 01, 2008 Pharmaceutical Online Bullish

GSK paid Valeant $125 million upfront plus up to $545 million in milestone payments for retigabine, "a first in class neuronal potassium channel opener for…

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Valeant acquires Xcel Pharmaceuticals in 2005; brought neurology assets including rights to retigabine/ezogabine.

Did it work? Outcome assessment

Legacy neurology products became durable but minor tail assets; the deal's marquee pipeline bet (retigabine/Potiga) reached FDA approval in 2011 but was commercially withdrawn worldwide in 2017 after serious safety warnings.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
Valeant Pharmaceuticals International, Inc. / Xcel Pharmaceuticals, Inc. (this deal)2005$280M42
Valeant Pharmaceuticals International, Inc. / Dow Pharmaceutical Sciences, Inc.2009$285M66
Valeant Pharmaceuticals International, Inc. / iNova Pharmaceuticals2011$700M63
Valeant Pharmaceuticals International, Inc. / Dermik Laboratories (Sanofi dermatology unit)2011$425M36
Valeant Pharmaceuticals International, Inc. / Bausch + Lomb2013$8.7B36
Valeant Pharmaceuticals International, Inc. / Medicis Pharmaceutical Corporation2012$2.6B33
Valeant Pharmaceuticals International, Inc. / PreCision Dermatology, Inc.2014$475M23

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