Valeant Pharmaceuticals International, Inc. (VRX) recently announced that it has entered into an agreement to acquire certain assets from Swiss Herbal Remedies Limited for less than one-time sales. The deal is expected to close by June 2012, subject to the fulfilment of certain regulatory conditions.
The acquired assets generated net revenues of 28 million Canadian dollars in 2011. Swiss Herbal’s portfolio comprising a broad range of scientifically formulated vitamins, minerals and supplements.
The company has a strong foothold in Canada. Its acquisition of Swiss Herbal assets will augment Valeant Pharma’s business in Canada and complement its other products like Cold-FX. We expect the deal to be accretive for Valeant Pharma.
We note that Valeant Pharma is on an acquisition spree to expand its business. Earlier this month, along with reporting first quarter 2012 results, the company had announced that it has entered into an agreement to acquire certain assets from privately-held specialty pharmaceutical company, University Medical Pharmaceuticals. As per the terms of the agreement, Valeant Pharma will pay approximately $64 million in addition to milestone payments based on revenue targets.
In April 2012, Valeant Pharma had purchased US-based, privately-owned specialty pharmaceutical company, Pedinol Pharmacal, Inc. and certain branded generic assets from Mexican pharmaceutical company, Atlantis Pharma.
In March 2012, Valeant Pharma inked a deal to purchase Russian specialty pharmaceutical company Natur Produkt. During the same month, Valeant Pharma signed a couple of more deals. The company inked a deal to acquire certain branded generic assets from an Austrian pharmaceutical company, Gerot Lannach. Furthermore, Valeant Pharma bought a 19.9% stake in a Brazilian biotech company, Pele Nova Biotecnologia S.A.
We remind investors that in 2012, Valeant Pharma had kicked off its acquisition spree with Brazilian sports nutrition and food supplements company Probiotica Laboratorios Ltd.
Our Recommendation
We currently have a Neutral long-term recommendation on Valeant Pharma. The stock carries a Zacks #1 Rank (Strong Buy rating) in the short run.
To read this article on Zacks.com click here.
Zacks Investment Research
