Obagi Medical Products (OMPI) is trading higher this morning after agreeing to an increased acquisition offer price from Valeant Pharmaceuticals (VRX). Obagi is a specialty pharmaceutical company that develops, markets and sells topical aesthetic and therapeutic prescription-strength skin care systems and related products in the physician-dispensed market. WHAT'S NEW: Obagi agreed to a revised $24 per share acquisition offer from Valeant, which had previously offered to buy Obagi for $19.75 per share. Obagi's board of directors has approved the amended transaction with Valeant, the company stated. WHAT'S NOTABLE: Following Valeant's initial offer, Merz Pharma Group, a neurological and dermatology drug maker, yesterday offered $22 per share for Obagi. In a note to investors sent yesterday following the offer from Merz, analysts at Cantor said they would not rule out a bidding war for Obagi. Cantor, however, kept its Hold rating on Obagi shares, noting that Valeant has been conservative in the past on its acquisition prices. TODAY'S PRICE ACTION: In mid-morning trading, Obagi is trading above the $24 offer price, rising about 9.5% to $25.06. Meanwhile, Valeant shares are up 12c to $75.49.