Valeant Surges on Higher Profit Forecast, Outlook for More DealsCrayton Harrison
Valeant Pharmaceuticals International Inc. shares jumped the most in more than three months after boosting its forecast for profit this year and predicting a steady flow of acquisitions.
The stock climbed 7.5 percent to $155.98 at 9:44 a.m., the biggest intraday increase since Sept. 24. It surged as high as $156.60 earlier, a record. Shares of the drugmaker, based in Laval, Quebec, rose 22 percent last year, compared with a 19 percent gain for the Standard & Poor’s 500 Pharmaceuticals Index.
After being outbid by Actavis Plc last year for drugmaker Allergan Inc. in a $66 billion deal, Valeant still has its eye on more than 100 smaller acquisitions -- for now, Chief Executive Officer Mike Pearson said today on a conference call. Larger deals are tougher to predict, he said.
“Our business development activities will remain a priority for 2015, and we expect a steady flow of small and medium size deals to continue,” he said.
Earnings this year will be $10.10 to $10.40 a share, up from an earlier forecast of about $10, Valeant said in a presentation to investors. That compared with the average analyst estimate of $10.03, according to data compiled by Bloomberg. Sales will be about $9.2 billion to $9.3 billion in 2015, the company said. Analysts had projected $9.03 billion.