Continuing with its strategy of making acquisitions and thereby
expanding its portfolio
Valeant Pharmaceuticals International, Inc.
) recently purchased US-based, privately owned specialty
pharmaceutical company, Pedinol Pharmacal, Inc.
The deal, expected to boost Valeant's earnings immediately, is
worth less than one and half times the sales recorded by Pedinol
Pharma, a drug maker focused on foot-related disorders, in 2011.
Pedinol Pharma's 2011 revenues came in at approximately $18
The addition of the products from Pedinol will augment Valeant's
strong dermatology business given the similar features prevalent in
the dermatological and podiatry businesses. The acquisition is a
positive for Valeant Pharma as apart from expanding its product
portfolio, the company will benefit from the erstwhile Pedinol
Pharma's experience in marketing podiatry-related products.
We note that Valeant Pharma is on a deal signing/acquisition
spree to expand its business. In March 2012, Valeant Pharma inked a
deal to purchase Russian specialty pharmaceutical company Natur
During the same month, Valeant Pharma signed a couple of more
deals. The company inked a deal to acquire certain branded generic
assets from Austrian pharmaceutical company, Gerot Lannach.
Furthermore, Valeant Pharma bought a 19.9% stake in Brazilian
biotech company, Pele Nova Biotecnologia S.A.
In February 2012, Valeant Pharma announced its intent to acquire
Eyetech, Inc., a private eyecare company. The Eyetech offer came on
the heels of Valeant's failure to acquire another eyecare company,
) in January 2012.
We remind investors that in 2012, Valeant Pharma kicked off its
acquisition spree with the acquisition of Brazilian sports
nutrition and food supplements company Probiotica Laboratorios
We currently have a Neutral long-term recommendation on Valeant
Pharma. The stock carries a Zacks #2 Rank (Buy rating) in the short
ISTA PHARMA INC (
): Free Stock Analysis Report
To read this article on Zacks.com click here.