02/05/2009
VLG veterans bring $285 million deal to Cooley
New Year's was nice, but Christmas and Thanksgiving are a blur for Cooley Godward Kronish attorneys who worked around the clock to get a deal solidified between two pharmaceutical companies before an accounting rule affecting mergers changed Jan. 1.
Aliso Viejo's Valeant Pharmaceuticals will pay $285 million in cash, plus additional undisclosed milestone payments, for privately owned Dow Pharmaceutical Sciences, a dermatology-focused company based in Petaluma.
The rule creating such a rush was the Statement of Financial Accounting Standards 141, which says companies must report royalties and milestone payments at "fair value" in the year of the deal, instead of the year they are paid.
That's posing some difficulties for buyers who aren't sure how to quantify the current fair value of payments that are contingent on the success of a product or progam.
View the full article
Reprinted with permission from the February 5, 2009 edition of The Recorder. ©2009 ALM Properties, Inc. All rights reserved.