Valeant sees better-than-forecast third-quarter profit

Wed Sep 24, 2014 10:20am EDT
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Sept 24 (Reuters) - Valeant Pharmaceuticals Inc expects to report higher-than-expected third-quarter revenue and better-than-forecast adjusted earnings per share, Chief Executive Officer Michael Pearson said on Wednesday.

Laval, Quebec-based Valeant is attempting a $51-billion hostile takeover of California-based Allergan Inc, and its third-quarter results are seen as pivotal to its efforts to remove most of Allergan's directors in a special shareholder meeting scheduled for Dec. 18.

Valeant stock jumped 5.4 percent in Toronto and 5 percent in New York in morning trading. Allergan shares rose 2.1 percent in New York.

In a letter to Allergan CEO David Pyott and lead independent director Michael Gallagher, Pearson said he was disappointed that Allergan continued to attack Valeant's business "without any basis" in correspondence between the companies on Monday.

Pyott and Gallagher told Pearson on Monday that Allergan is concerned about the sustainability of Valeant's business model, which is built mostly around acquisitions, and that its financial disclosures are "opaque."

Valeant's third-quarter results are expected to make the company's performance clearer, since there is unlikely to be the usual number of restructuring and other one-time charges connected with acquisitions to obscure the bottom line. Valeant has slowed its pace of acquisitions while it pursues Allergan.

Valeant will report third-quarter results on Oct. 20. (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Jeffrey Benkoe)