(Adds comment from Obagi)
By Ben Fox Rubin
Merz Pharma Group has offered to buy specialty pharmaceutical
company Obagi Medical Products Inc. (OMPI) for about $385 million,
looking to top a $345 million bid from Valeant Pharmaceuticals
International Inc. (VRX, VRX.T) a few weeks ago.
Merz is offering $22 a share in cash for Obagi, above Valeant's
offer price of $19.75. Obagi shares were up 16% to $22.90 in recent
trading, as investors may be expecting a bidding war to ensue.
Merz said it's publicly disclosing its offer in order to ensure
Obagi stockholders have an opportunity to benefit from its
"superior proposal."
In a separate statement, Obagi said its board will evaluate the
offer, noting "time is of the essence in this matter."
A representative from Valeant wasn't immediately available for
comment.
In late March, Obagi said it agreed to be acquired by Valeant.
Merz said that at the time it was engaged in ongoing discussions
with Obagi regarding a potential combination and wasn't made aware
that Obagi was considering signing a deal with another party on an
accelerated timeframe. It added that it's prepared to move forward
immediately with the transaction.
Merz said Obagi would be a good fit for its company, allowing it
to expand in the U.S. market and strengthen its dermatology
portfolio.
Obagi, a specialty pharmaceutical company, develops proprietary
topical aesthetic and therapeutic prescription-strength skin-care
systems, which generated about $120 million in revenue last
year.
Valeant develops a range of pharmaceutical products in
dermatology, neurology and branded generics.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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