Two Well Known Drug Companies Merge

Filed in archive News on July 4, 2010

© Ioan Sameli

Two large and well known drugs companies recently announced a merger. Biovail Corp, a Canadian company and maker of the antidepressant Wellbutrin XL and pain relief drug Ultram ER, will merge with Valeant Pharmaceuticals International and form a new company under the Valeant name. Valeant is based in Aliso, California and is in the generic drug and chronic illness market.

The merger is expected to bring greater growth and North American presence.

Biovail is still recovering from several legal issues and scandals that involved false accounting and bribe allegations. Some of these cases are still working their way through the court system. Biovail is now focusing on series of new drugs for the central nervous system. It has five drugs already in development, including drugs for the treatments of schizophrenia, Touretts's Syndrome, Alzheimer's, and, Parkinson's. Since Biovail suffered declining sales when Wellbutrin generic drugs hit the market, its merger will a generic drug manufacturer should help balance the scales.

The new company will be headquartered in Ontario, Canada.