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Actavis buys vaginal gel from Valeant for $55M

NEW YORK (AP) -- Actavis Inc. said Wednesday it acquired a bacterial vaginosis gel developed by Valeant Pharmaceuticals International Inc.

Actavis said it agreed to pay Valeant $55 million for its metronidazole gel product, which has not yet received marketing approval. The total includes both an upfront payment and payments related to sales targets. Actavis said it plans to file for marketing approval of the product this spring and hopes to begin selling it in mid-2014.

If the metronidazole gel is approved Valeant will also get "minimal" royalties on sales over the first three years, according to Actavis. If Actavis decides to start selling an authorized generic version of the product, it will share profits with Valeant.

Actavis is headquartered in Parsippany, N.J. and Valeant is based in Canada. In afternoon trading, Actavis stock lost 42 cents to $105.31 and Valeant shares gave up $1.05 to $75.03.