Valeant CEO On Allegations Against The Company And Future M&A Deals

Even though if its bid for Allergan, Inc. AGN was not successful, Valeant Pharmaceuticals Intl Inc VRX has tasted success in terms of it’s market-cap. The company’s stock is up over 13% in last one month and by over 38% in the last three months. However, Valeant is battling a lot of allegations against its business model.

Valeant CEO, Mike Pearson, was on CNBC Tuesday to talk about the allegations against the company and its future M&A plans.

“I think we are in a bit of a mission to prove that many of the allegations about our business model and our R&D are just not true and I think there is a silver lining in that, we have a number of clean quarters in a row, in terms of, It’s been 18 months since we had a big acquisition B&L [Bausch & Lomb] and I think the true strength of our business will begin to show,” Pearson said.

Isn’t Your Business Model Based On Acquisitions?

“Our business model is two things, one is organic growth of our base business, which is critical, when you make acquisitions you need to demonstrate that what you buy you can operate,” Pearson said. “So, a big part of our business model is just that, which has gotten a little bit overlooked.  In terms of M&A, we have absolutely started coming back in M&A or probably more smaller to mid-sized deals and we are just not going to predict the timing of when the next large one is going to come.”

Is Valeant Prepared For Acquiring A Company Of Similar Size Of Allergan?

“We raised over $20 billion in preparation for the Allergan deal and there was more to be had, so I think we have access to capital,” Pearson replied.