Valeant hits top of market value

Pharmiceutical company surpassed RBC as firm now worth $11.6 billion

On the strength of quarterly results that topped analysts’ estimates, Valeant Pharmaceuticals International Inc., the drugmaker on an acquisition streak, surpassed Royal Bank of Canada as the country’s largest company by market value on Thursday.

Valeant surged 4.7 per cent to $326.96 per share for a market value of $111.6 billion shortly after noon on the Toronto Stock Exchange. That eclipsed Royal Bank’s $108.2 billion value. Valeant surged after boosting its 2015 profit forecast while posting strong second-quarter results. Mike Pearson, chief executive officer of the Laval, Que.-based company, has inked at least 11 deals in the past 12 months.

On Thursday, the company also raised its forecast for full-year profit and revenue, saying it now expects earnings in the range of $11.50 to $11.80 per share in 2015, with revenue ranging from $10.7 billion to $11.1 billion.

Pearson said in a statement that its recent acquisitions and progress in developing new products left executives feeling “confident in raising our guidance for the remainder of 2015.”

Asharp rise in interest expenses led Valeant Pharmaceuticals International Inc. to post a loss of $53 million in the second-quarter, versus net income of $125.8 million in the same period a year earlier.

Adjusted for one-time expenses, however, earnings worked out to $2.56 per share.

These adjusted results beat analysts’ expectations of $2.46 per share, according to a survey by Zacks Investment Research.

The drug maker’s revenue rose 34 per cent to $2.73 billion, powered by stronger sales of its dermatology and neurology products. Valeant’s total revenue of $2.73 billion also beat analysts’ forecasts.

For the current quarter ending in September, Valeant expects its pershare earnings to range from $2.60 to $2.70 and revenue to range from $2.6 billion to $2.8 billion.