Valeant Pharmaceutical Case Study

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The acquisition
The reason for the acquisition is different for both Obagi and Valeant. Valeant Pharmaceuticals use acquisitions and mergers as a growth strategy and have acquired many companies throughout the years. J. Micheal Pearson, Valeant Pharmaceutical’s CEO and Chairman, mentioned several reasons of why the acquisition of Obagi took place.
These include:
• Adding, strengthening and diversifying Valeant’s current dermatology portfolio
• Building upon growing aesthetics franchise
• Expand market presence with dermatologists and plastic surgeons

Adding, Strengthening and diversifying Valeant’s dermatology portfolio:

Before the acquisition with Obagi Valeant’s dermatology portfolio consisted of mainly 16 principal products including
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They also preform surgical procedures such as Obagi Blue Peel, which is used to reduce wrinkles, blemishes and sun damage. Obagi provides a range of products and services in order to meet the wants of the customers. Their product line of cosmetic goods includes all the different types and sizes that it manufactures. Their products target issues of acne and blemishes, skin concern, eye products, and loss of firmness. Their main products include Obagi Retin-A, Obagi Blue Peel, and Obagi Hydrate Review. These are in the form of serums, lotions, creams, and gel. The product range helps the business meet the needs of different customers. Obagi also offers in office services that include surgical operations in order to both expand their product mix and help customers achieve the anti-aging look. Obagi’s products generated around $120 million in revenue in…show more content…
It is a in office procedure which is effective for reducing wrinkles, fixing uneven pigmentation, tightening skin, reducing sun damage as well as reducing acne scars. It allows medical aesthetician to monitor the depth in which the chemical is to go through to replace dead skin cells with health skin cells. It also includes other procedures, which includes Medi Botox, Medi Fillers, Medi Mesotherapy, Medi Carboxy Therapy and Medi E-Matrix. Through their acquisition with Obagi they were able to build and grow in that franchise and market.

Expand market presence with dermatologists and plastic surgeons

Obagi products are used a lot by plastic surgeons and dermatologists. Obagi also have several plastic surgeons and dermatologists whom preform their procedures, which help them, increase their revenue. Valeant Pharmaceuticals do not sell to this market and therefore their acquisition with Obagi would open up and make it easy to go into this

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