Back in June, InSite Vision Inc. (OTCBB: INSV), which focuses on specialty ophthalmic products for diseases of the eye, agreed to be acquired by QLT Inc. (NASDAQ: QLTI) in an all-stock transaction. QLT shareholders would own about 89% of the combined company, which would retain the QLT name and be incorporated in Canada, thanks to QLT’s base in Vancouver, British Columbia. Last week, however, InSite informed QLT that a “multi-national pharmaceutical company” had made an unsolicited bid of $0.25 per share of INSV, which the target decided was a better offer than QLT made. QLT now has to match the proposed price, or terminate the agreement. Our bets are on Valeant Pharmaceuticals (NYSE: VRX) as the new suitor, given its Bausch + Lomb buy a few years ago.