Valeant Receives U.S. Antitrust Approval To Buy Synergetics USA

(RTTNews) - Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) said that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR") with respect to the previously announced tender offer by its indirect wholly owned subsidiary, Blue Subsidiary Corp., for all of the outstanding shares of common stock of Synergetics USA Inc. (SURG) at a price per share of $6.50, net to the holder in cash, plus one contractual contingent value right per share, which represents the right to receive up to two contingent payments, if any, of up to $1.00 in the aggregate net to the holder in cash was granted early termination, effective October 5, 2015, by the U.S. Federal Trade Commission.

The waiting period was scheduled to expire at 11:59 p.m., New York City time on October 7, 2015. The early termination of the HSR waiting period satisfies one of the conditions to consummate the tender offer. The completion of the tender offer remains subject to certain other conditions as described in the Tender Offer Statement on Schedule TO filed by Valeant on September 16, 2015, as amended.

Subject to the satisfaction of the other conditions to closing, the transaction is expected to close in the fourth quarter of 2015.

Meanwhile, Valeant Pharmaceuticals International was under pressure this morning after a New York Times article entitled "Valeant's Drug Price Strategy Enriches It, but Infuriates Patients and Lawmakers."

Valeant has come under scrutiny for raising prices on certain drugs after acquiring them. Some Congressional Democrats reportedly have been pushing the company to provide documents to explain why the company raised prices on two heart drugs.

Over the weekend, the New York Times published an article outlining how several consumers have been affected by Valeant's drug price increase.

VRX closed Monday trading at $163.46, down $18.86 or 10.34%. In after hours, the stock further dropped $2.46 or 1.50%.