Valeant Pharmaceuticals International Inc has agreed to buy dermatology products maker Medicis Pharmaceutical Corp for about $US2.6 billion ($A2.5 billion) in cash in a deal to strengthen its position in skin treatments and care.
Montreal-based Valeant said on Monday that it has agreed to pay $US44 per share for Medicis, a 39 per cent premium over Friday's closing price for the Arizona company.
The boards of both companies have approved the deal. It is subject to approval by Medicis shareholders and regulatory clearance.
Valeant chairman and chief executive Michael Pearson said the deal would be "a significant next step" towards making his company the leader in dermatology.
The combined company's commercial dermatology operations would be based in Scottsdale, Arizona and will operate under the Medicis name.
Its research and development operations would operate in Canada, Arizona and California.
Valeant produces Dermaveen, Dermadrate Dry Skin Treatment, Dermatix, Pevaryl and Nyal.