Valeant Soars on Medicis Buyout
Shares of Valeant Pharmaceuticals (NYSE: VRX) traded higher on Tuesday after the company agreed to acquire Medicis Pharmaceutical (NYSE: MRX) for $44 per share -- Medicis traded up more than 38% higher on the session.
Investors are clearly pleased with the deal, as VRX has added nearly 15% in the wake of the announcement. While it is not exactly unusual for a company's stock price to rise when it announces an acquisition, more often than not, the acquirer's shares actually fall.
The large jump in Valeant stock suggests that investors are very enthusiastic about the deal price and the potential synergies between the two companies. Valeant has now added 26% in 2012, and continues to be a very high performing pharmaceutical name.
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