Valeant Pharmaceuticals Intl Inc (VRX): This Company is Set for Newer Heights in the Eye-Care Sector

Page 1 of 2

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has been on an acquisition spree. Its latest purchase is Bausch + Lomb in an all-cash deal worth $8.7 billion. The stock of VRX has been rising over the past year and this takeover will increase it further.

Involved Parties

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is the largest publicly traded Canadian drug maker. Headquartered in Montreal, Quebec, this multinational pharmaceutical company specializes in dermatological and neurological treatments that include prescription, non-prescription, and generic drugs.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

The U.S. is its largest market, and its manufacturing sites are spread across Canada, Poland, Brazil, and Mexico. Its strategy is to develop, acquire, and commercialize new products through strategic partnerships and acquisitions of products and companies.

Bausch + Lomb is owned by an investor group led by Warburg Pincus and is best known for its contact lenses, lens care solutions, ophthalmic surgical devices, and eye drugs. The company was set to go public in 2013, but agreed to be acquired by Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

The Acquisition

This is an all cash deal valued at $8.7 billion, and will be completed in the third quarter of 2013. Under the terms of the agreement, unanimously approved by the Board of Directors of both companies, Warburg Pincus will receive $4.5 billion. The other $4.2 billion will settle the outstanding debt of Bausch + Lomb.

Finance for the acquisition will be raised through debt and the issue of new equity worth $1.5 to $2 billion. Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s existing ophthalmology business will be integrated with Bausch + Lomb, which will retain their name as a unit of Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

Competitors

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is Israel’s top drug company and the global leader in the makers of generic medicines. The company makes generic antibiotics, heart drugs, anti-depressants, etc. and branded pharmaceuticals for Parkinson’s and multiple sclerosis. Generic drugs are cheaper variants of patent-expired-medicines.

H Lundbeck A/S focuses on drugs that treat central nervous system disorders such as Parkinson’s, Alzheimer’s, depression, etc. The company spends around 20% of its revenue on research and development.

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)’s market cap of $32.5 billion, puts it ahead of Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s MV of $25.9 billion. H Lundbeck is more narrowly focused with a market cap of $3.7 billion only. The net income of Valeant is -$130 million, probably due to its acquisitions, while the corresponding figures for Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and H Lundbeck are $1.7 billion and $1.1 billion, respectively.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!