UPDATE 1-Drugmaker Valeant touts Bausch + Lomb growth to Allergan investors

Fri Jul 18, 2014 1:44pm EDT
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(Adds Allergan comment)

By Rod Nickel

July 18 (Reuters) - Valeant Pharmaceuticals Inc moved on Friday to blunt a key criticism by takeover target Allergan Inc of its Bausch + Lomb business by releasing data showing strong sales growth.

Allergan, which is trying to fend off a $51 billion hostile bid from Valeant, has warned its investors about the sustainability of the Laval, Quebec-based company's acquisition-based business model.

Allergan, which makes Botox anti-wrinkle injections, has said much of Valeant's organic growth, a measure of existing operations' performance, stemmed from unsustainable price increases, not sales volume. Allergan also said Bausch, Valeant's biggest acquisition, appeared to be losing market share.

In a presentation that Valeant said it would take to Allergan investors, the company said Bausch + Lomb, which is known for its contact lenses, had recorded organic revenue growth of 12 percent in the second quarter from a year earlier.

More than 90 percent of that increase was due to a rise in sales volume, it said.

"Bausch + Lomb continues to benefit from Valeant's decentralized operating model," Chief Executive Officer Mike Pearson said in a statement. "The results at Bausch + Lomb further validate our business model, which Allergan has no credibility in attacking."

Valeant bought Bausch last year for $8.7 billion.   Continued...