Valeant Pharmaceuticals International, Inc.
) received positive news when the U.S. Food and Drug
Administration (FDA) issued marketing clearance for Bausch +
Lomb's newest frequent replacement silicone hydrogel contact
The lenses are made using the MoistureSeal Technology. The
results from a multi-site study of Bausch + Lomb contact lenses
with MoistureSeal technology showed that it offers superior
comfort and vision as compared to other lenses.
We note that Valeant acquired Bausch + Lomb in Aug
With a history of 160 years, Bausch + Lomb currently has
recognized prescription and over the counter (OTC) brands such as
Besivance, Lotemax, Ocuvite and PreserVision and vision care
brands such as Biotrue ONEday, PureVision, renu and Boston under
The company also has surgical brands such as enVista, Storz,
Stellaris and VICTUS under its extensive portfolio.
The new silicone hydrogel lenses will further strengthen its
We remind investors that Valeant acquired Bausch+Lomb to
strengthen its ophthalmology portfolio, which was a miniscule
portion of Valeant's overall portfolio.
We believe the acquisition will help Valeant to penetrate into
the growing eye health market fueled by an aging patient
population, an increased rate of diabetes, and increasing demand
from the emerging markets.
Concurrent with second-quarter results, Valeant upped its
guidance for 2013 to include the Bausch+Lomb acquisition. Valeant
now expects revenues between $5.8 billion and $6.2 billion, up
from the previous projection of $4.4 billion - $4.8
Earnings per share on a cash basis are now projected around
$6.00 - $6.20, up from the earlier projection of $5.55
Valeant now expects synergies more than the earlier estimate
of $800 million from this acquisition. Of the total projected
synergies, $500 million is expected in 2013.
We are impressed by the company's integration efforts and
increase in expected synergies.
Valeant currently carries a Zacks Rank #3 (Hold). Right now,
) look attractive. While Actelion and Jazz Pharma carry a Zacks
Rank #1(Strong Buy), Cempra carries a Zacks Rank #2 (Buy).
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