Move over Royal Bank of Canada, Valeant Pharmaceuticals International Inc. is now the country’s biggest company.
The drugmaker on an acquisition streak has surpassed Royal Bank as the country’s largest company by market value.
Valeant surged 5.7 percent to a record C$330.04 per share for a value of C$112.6 billion ($86.4 billion) at 4 p.m. on the Toronto Stock Exchange. That eclipsed Royal Bank’s C$109 billion value, according to data compiled by Bloomberg. Toronto-based Royal Bank is Canada’s largest lender by assets.
Valeant surged after boosting its 2015 profit forecast while posting second-quarter results that beat analysts’ estimates. Mike Pearson, chief executive officer of the Laval, Quebec-based company, has inked at least 11 deals in the past 12 months, according to data compiled by Bloomberg.
Valeant has advanced 105 percent this year, leapfrogging many of Canada’s largest companies and making it the second-best performing stock on the Standard & Poor’s/TSX Composite index. The drugmaker surpassed Toronto-Dominion Bank in May, after climbing past Bank of Nova Scotia in February. Valeant has also hurdled Canadian National Railway Co., Enbridge Inc. and Bank of Montreal during the past 12 months. Valeant, once based in Aliso Viejo, California, merged with Mississauga, Ontario-based Biovail Corp. in 2010.
Royal Bank, whose roots go back to 1864, has fallen 5.9 percent this year, compared with a 7 percent decline in the eight-member S&P/TSX Composite Banks Index. Financial stocks have dropped amid investor concerns over a slowing economy and declines in oil prices and commodities.