Valeant, Canada’s Biovail to Combine in Stock Deal

Biovail Corp., Canada’s largest publicly traded drugmaker, will merge with Valeant Pharmaceuticals International, creating a company with annual sales of $1.75 billion.

Valeant shareholders will receive a one-time cash dividend of $16.77 a share before the deal closes, plus Biovail stock valued at $29.69 a share at closing, the companies said today in a statement. Biovail holders will own about 50.5 percent of the new company and holders of Aliso Viejo, California-based Valeant will have 49.5 percent, the companies said.