Valeant announces strong Q3 results, will expand US contact lens plant
pharmafile | October 20, 2015 | News story | Manufacturing and Production, Sales and Marketing | Valeant, financial results, manufacturing, production
Valeant has announced plans to invest up to $150 million and add 200 jobs at its Bausch and Lomb plant in South Carolina, US, over the next five years.
The news came as company chief executive J. Michael Pearson made a visit to the manufacturing facility to celebrate it reaching the milestone of producing four billion bottles of contact lens solution products, calling the figure testament to the “enormous impact that the facility has had across the globe.”
Valeant announced it would make an immediate investment of $25 million, adding another line to the facility. Combined with earlier investments at the same plant, this will allow it to add another 40 million units and boost production by some 20%.
The stepped investment will include $90 million over the next two years, leading to the $150 million total after five years.
Valeant acquired Bausch and Lomb in August 2013 for $8.7 billion and complemented the purchase two years later with the acquisition of Synergetics – a supplier of precision vitreoretinal surgical devices.
News of the production boost followed the Canada-based company announcing strong third quarter results for 2015 on Monday. It reported revenues of $2.8 billion: an increase of 36% on the previous year, and a figure which included $461 million from Salix Pharmaceuticals, which the company purchased for around $11 billion in March this year.
Valeant also made headlines earlier this year with its $1 billion purchase of Sprout, the company behind the female libido drug Addyi.
Yet investors’ eyebrows were raised as Valeant stated its intention to move away from its policy of growth through acquisitions, switching instead to focus more on research and development. The company’s shares also suffered as a result of the recent subpoenas the company received in the US over pricing of the drugs Nitropress and Isuprel. Both drugs received percentage price increases in the hundreds following the company purchasing the rights.
“Given the evolution of our product mix, coupled with the recent events, it is likely that we will pursue fewer, if any, transactions that are focused on mispriced products,” J. Michael Pearson said in a conference call.
Joel Levy
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