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File photo of Valeant Pharmaceuticals International Inc. CEO Michael Pearson.Ryan Remiorz/The Canadian Press

Valeant Pharmaceuticals International Inc. has sharply increased its all-cash takeover bid for Obagi Medical Products Inc. in a move that now values the equity of the U.S. maker of skin care products at about $418-million (U.S.).

Montreal-based Valeant gave no reason for the increase in the all-cash bid to $24 per share from $19.75.

When the original offer was announced March 20, the two companies said the $19.75 offer was a 28 per cent premium to Obagi's closing price on March 19.

Meanwhile, Valeant says the expiration date for the new, higher offer remains unchanged at midnight eastern time April 23 and conditional on a majority of Obagi shares being tendered.

Valeant, formerly Biovail Corp., develops, manufactures and sells a broad range of pharmaceutical products primarily in the areas of dermatology, neurology and branded generic drugs.

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