Canada's Valeant gains from new deals, raises 2013 outlook
By Krithika Krishnamurthy and Rod Nickel
(Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO: Quote) (VRX.N: Quote), Canada's biggest publicly traded drugmaker, raised its full-year adjusted earnings forecast for the second time and reported a quarterly profit, boosted by sales from its skin-care acquisitions.
The company has aggressively pursued acquisitions since its 2010 takeover by Biovail Corp, which assumed the Valeant name. Valeant bought contact lens maker Bausch & Lomb Holdings Inc for $8.7 billion in the second quarter.
Valeant has favored businesses where patients often pay out-of-pocket, such as dermatology and opthalmology, cutting its exposure to cost-sensitive insurers.
The company said it now expects a 2013 adjusted profit, which it calls cash earnings, of $6.00-$6.20 per share, up from its prior estimate of $5.55-$5.85. Analysts were expecting, on average, adjusted profit of $5.93, factoring in the accretive acquisition of Bausch & Lomb, according to Thomson Reuters I/B/E/S.
Valeant forecast 2013 total revenue of $5.8 billion to $6.2 billion.
Valeant's stock rose about 1 percent in early trading to C$100.70 in Toronto and $96.63 in New York, and has almost doubled in value in the last year.
Even as it digests Bausch, Valeant will be active for the rest of 2013 with smaller acquisitions that fit into its existing divisions - the company's "bread and butter" - said Chief Executive Michael Pearson. Valeant, which has a market cap of about $31.8 billion, is also holding discussions about a possible merger of equals, even though completing such a deal "can't be predicted," he said.
The company's growth strategy to become one of the world's largest health care companies will not change, Pearson said. Continued...