Canaccord analyst Neil Maruoka says recently completed acquisitions will drive Valeant Pharmaceuticals (TSX:VRX) soon to be released third quarter numbers.
On Thursday, before the market open, Valeant will reports its Q3 numbers. The company is following on second quarter in which it posted total revenue $1.1 billion, which was an increase of 41% over the year prior, excluding one-time items in 2012’s Q2.
Maruoka says the key event that happened in the third quarter for Valeant was clearly the $8.57 billion acquisition of global eyecare brand Bausch & Lomb Holdings Incorporated, which has a broad portfolio of eyecare products that generated $3.3 billion in revenue in its fiscal 2013 with adjusted EBITDA of $720 million.
The Canaccord Genuity analyst says the acquisition of Bausch & Lomb, combined with the $2.6 billion pickup of dermatological and aesthetic pharmaceutical products maker Medicis, will drive Valeant’s Q3.
Maruoka believes run rate synergies from Medicis will contribute more than $300-million, and that Bausch & Lomb will contribute more than $500-million by year’s end. This, he says, will boost third quarter revenue by 91.7% over the same period last year.
In a recent research update to clients, Maruoka reiterated his BUY rating and one-year target of (US) $115.
At press time, shares of Valeant Pharmaceuticals on the NYSE were down 1.2% to $111.17.