Merz Pharma Group Withdraws Proposal to Acquire Obagi Medical Products
FRANKFURT, Germany, April 8, 2013 /PRNewswire/ -- Merz Pharma Group ("Merz" or "the Company") today announced that it has withdrawn its non-binding proposal to acquire all of the outstanding common stock of Obagi Medical Products, Inc. (NASDAQ-GS: OMPI) ("Obagi") for $22 per share in cash. The decision to withdraw the proposal follows the recent announcement that Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) ("Valeant") increased its offer to acquire Obagi from $19.75 to $24.00 per share in cash, pursuant to an amendment to the Valeant and Obagi Agreement and Plan of Merger, dated March 19, 2013.
"Obagi was an opportunity worth pursuing given its complementary fit with Merz's portfolio of injectables," said Merz CEO Philip Burchard. "However, Merz is a disciplined buyer and at this level the economics of such a transaction do not meet our requirements. We look forward to exploring other acquisition opportunities that fit our strategy. In addition, we will build on Merz's strong position in the markets we serve and continue to invest in our own R&D."
About Merz Pharma Group
Merz is involved in the research, development and sale of innovative drugs and medical products for neurological and clinical dermatology indications as well as for aesthetics medicine and metabolic disorders. Memantine, the world's first glutamatergic drug for the treatment of moderate to acute Alzheimer's-induced dementia, is the second most prescribed medication for dementia. Merz offers the first botulinum toxin that is free of complex proteins for treating neurological movement disorders. Another core competency of Merz lies in clinical and aesthetic dermatology. Merz Aesthetics offers a tailored and harmonized portfolio of products for minimally invasive treatments and Merz is an important player in the US aesthetics market with products Radiesse, the neurotoxin Xeomin and the filler Belotero. In the Consumer Products segment, Merz Consumer Care is the leading provider of OTC medication, dietary supplements and skincare products in the German-speaking countries with its well-known tetesept® and Merz Spezial® brands. The Merz Pharma Group employs 2,391 people worldwide (prior year: 2,131). The Company generated revenue of EUR 913 million in fiscal year 2011/12 (prior year: EUR 649.6 million).
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SOURCE Merz Pharma Group