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Actavis acquires worldwide rights for Valeant's Metronidazole 1.3% vaginal gel

Actavis (ACT), and Valeant (VRX) announced that Actavis Specialty Brands has acquired worldwide rights to Valeant's Metronidazole 1.3% Vaginal Gel antibiotic development product, a topical antibiotic for the treatment of bacterial vaginosis. Under the terms of the agreement, Actavis Specialty Brands is acquiring the product for approximately $55M which includes upfront and certain milestone payments, and minimal royalties for the first three years of commercialization. In the event of generic competition on Metronidazole 1.3%, should Actavis choose to launch an authorized generic product, the company would share the gross profits of the authorized generic with Valeant.