Valeant eyes smaller deals to build on Salix, Dendreon purchases

Valeant Pharmaceuticals International Inc will use its acquisitions of Salix Pharmaceuticals Ltd and assets of Dendreon Corp for smaller deals that fit into those businesses, Chief Executive Officer Michael Pearson said on Monday. Laval, Quebec-based Valeant on Sunday announced its largest-ever acquisition, the $10.1 billion cash purchase of Salix, known for its drug Xifaxan to treat irritable bowel syndrome. Valeant will finance the deal for Salix, a drugmaker for gastrointestinal disorders, with debt, pushing its ratio of debt to 5.6 times earnings before interest, taxes, depreciation and amortisation, from 3.5 times before the deal. Last November, Salix announced that supply levels for Xifaxan and other drugs were higher than it had indicated, forcing the company to slash its full-year earnings forecast.
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