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Canadian drugmaker Valeant Pharmaceuticals International Inc. said Monday that it received approval from the Federal Trade Commission for its $425 million Dermik buyout and $345 million acquisition of Ortho Dermatologics, clearing the way for it to complete the deals.
As part of the deal, Valeant will be required to divest three prescription drugs.
Ortho Dermatologics is a Janssen Pharmaceuticals Inc. unit, while Dermik is the dermatology division of French drugmaker Sanofi. The Ortho Dermatologics deal includes three prescription brands: the acne treatments Retin-A Micro and Renova and the athlete's foot cream Ertaczo. Dermik makes the acne drug BenzaClin.
Janssen is owned by the health care company Johnson & Johnson, which is based in New Brunswick, N.J.
The FTC unanimously approved the consent orders tied to the transactions. Under the settlements, Valeant will sell the manufacturing and marketing rights to drug products that treat acne and actinic keratosis, a precancerous skin lesion, to Mylan Inc. of Canonsburg, Pa. Valeant will also sell the marketing rights to a drug that treats fine line wrinkles to privately held Spear Pharmaceuticals Inc.
Valeant anticipates closing on the Ortho transaction on Monday and the Dermik deal by the end of the year.
U.S.-listed shares of Valeant Pharmaceuticals fell $1.28, or 2.7 percent, to $45.83 in afternoon trading. The stock has traded in a 52-week range of $27.90 to $57.24.