Teva seen as Valeant target

"Bloomberg": Valeant Pharmaceuticals aims for a $150 billion market cap by 2016.

A long article by "Bloomberg" on Thursday about Canada's Valeant Pharmaceuticals International Inc. (NYSE: VRX) contains a very interesting item for Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) investors. "Bloomberg" says that Valeant has set a market cap target of $150 billion, and that its market cap has risen from $3 billion in 2010 to $44 billion today, mainly through a string of acquisitions, including the large acquisition of Bausch & Lomb in 2013.

Teva's share price has risen 11% since the beginning of the year, compared with losses by both the Dow Jones Industrial Average and Nasdaq indices.

"Now, Valeant CEO Mike Pearson says his goal is to snag a spot among the world’s five biggest drugmakers by the end of 2016. To eclipse rivals such as Sanofi and Merck & Co.," says "Bloomberg."

"Bloomberg" cites Aegis Capital Corporation as saying that the best fit for Valeant may be Teva. "This transaction is going to happen in 2014, and it’s going to be a biggie,” Aegis Capital head of health-care equity research Raghuram Selvaraju told "Bloomberg". “The prospect of being a $150 billion market cap company is actually not unrealistic at all. There are targets that are appealing, and more importantly, there are targets that are vulnerable. Valeant just needs to act now.”

Published by Globes [online], Israel business news - - on February 2, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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