Valeant to acquire Commonwealth's US, Canadian business

Commonwealth Laboratories has announced its agreement with Valeant Pharmaceuticals for the latter to acquire the former’s U.S. and Canadian business, including the rights to IBSchek, a new blood test for irritable bowel syndrome.

“We are excited to align with Valeant. This partnership allows Commonwealth to effectively scale our product line, including our ground-breaking new blood test for irritable bowel syndrome, IBSchek, utilizing Valeant’s vast resources and industry experience,” Craig Strasnick, chief operating officer at Commonwealth, said in a press release. IBScheck, launched by Commonwealth in May 2015 during Digestive Disease Week, is an ELISA-based blood test that can be performed in a physician’s office, with results available 24 hours after the specimen is received for analysis.

“We truly believe this move will be a driving force in helping the millions of Americans and Canadians affected by irritable bowel syndrome and other disorders within gastrointestinal, as well as additional medical disciplines, as we continue to expand upon our portfolio,” Strasnick said. “This path forward gives Commonwealth the ability to grow the business on an accelerated trajectory. It is an exciting time for our company and we look forward to, what we know, will be a very bright future.”

An up-front purchase price will be paid by Valeant on closing according to the terms of the agreement, the release said, “with the opportunity for additional sales-based milestones payments.”

The transaction remains subject to closing conditions before completion, after which Commonwealth will retain its existing management team. Furthermore, Commonwealth Diagnostics International, an unaffiliated company created by Commonwealth’s current owners, will offer the company’s diagnostic portfolio outside the U.S. and Canada.

Disclosure: Strasnick reports he is an employee of Commonwealth.