Valeant revenue jumps, acquisitions hit net profit
By Allison Martell
(Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO: Quote), Canada's biggest public drugmaker, reported a drop in quarterly net profit on Friday, hurt by costs associated with its long string of acquisitions, but revenue jumped almost 50 percent and adjusted earnings rose.
Montreal-based Valeant, whose shares were little changed after the results, has been on the acquisition trail since its 2010 takeover by Biovail Corp, which assumed the Valeant name.
One of its latest deals was the $2.6 billion purchase of Medicis Pharmaceuticals Corp MRX.N, a top competitor in the U.S. dermatology market, in early September. Regulatory approval is still pending.
On a conference call on Friday, Valeant Chief Executive Michael Pearson said annual cost savings associated with the Medicis deal will likely "significantly exceed" his company's $225 million forecast.
"It's definitely looking good for 2013," Morningstar analyst David Krempa said of the Medicis update. Krempa added that Valeant's results for the third quarter, ended September 30, were in line with his expectations.
In its acquisition campaign, Valeant, with a market value of about C$17 billion ($17 billion), has favored segments where patients often pay out of pocket, such as opthalmology and dermatology, cutting its exposure to cost-sensitive insurers.
Also in September, Valeant acquired Visudyne, a drug used to treat age-related blindness, from Canadian biotech company QLT Inc QLT.TO for $112.5 million.
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