Salix finally sold; Valeant pays $10B cash

Canadian drugmaker Valeant Pharmaceuticals International (VRX) has agreed to buy much-courted Salix Pharmaceuticals for about $10 billion in cash.

The companies said Sunday that their boards of directors approved the transaction, which amounts to about $158 per share in Salix stock. With debt, the deal is valued at $14.5 billion.

That's just above Raleigh, North Carolina-based Salix's closing price of $157.85 per share on Friday.

Valeant got a deal and Salix went too cheaply, investors said this morning.

Valeant shares zoomed $23, to $196.26, up 13.3% shortly after trading opened.

Salix went the other way, down to $156.15, off $1.70 or 1.1

Valeant said the acquisition will create a strong platform for growth, given Salix's focus on developing drugs to treat gastrointestinal diseases.

Valeant said it has no plans to reduce Salix's specialty sales force, among others, but it hasn't determined how many of Salix's primary-care sales staff will remain.

Four other companies tried to buy Salix potential buyers over the past year. And Valeant spent the year unsuccessfully trying to acquire Botox-maker Allergen.

The transaction is expected to close in the second quarter.