UPDATE 2-Valeant raises 2015 profit outlook more than expected, stocks jump

Thu Jan 8, 2015 10:31am EST
 
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(Updates share movement, M&A plans, analyst's comment)

By Rod Nickel

Jan 8 (Reuters) - Valeant Pharmaceuticals International Inc on Thursday raised its 2015 guidance for adjusted profit more than expected, as the drugmaker sees growth from existing products and a stream of small acquisitions.

Valeant shares jumped 7 percent in New York and Toronto.

The deal-making Laval, Quebec-based company failed in November to buy Allergan Inc, when that company accepted a higher offer from Actavis PLC.

Chief Executive Officer Michael Pearson said the company would focus in 2015 on buying smaller, private companies.

"I look at the list now of our over 100 active conversations (with targets), the vast, vast majority are private companies," he said. "That's been our history, that's where our pipeline is now."

Pearson's plans were more ambitious a year ago when Valeant aimed to become a top five drug company by market capitalization by the end of 2016, a goal that would require tripling its roughly $49 billion market cap.

The company is targeting acquisitions in Asia, the Middle East, Africa and Latin America, Pearson said. Valeant also wants to build up its U.S. dental business and its dermatology, surgical and opthamology lines.   Continued...