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4 Pictures Every Valeant-Salix Investor Should See

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4 Pictures Every Valeant-Salix Investor Should See
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Canada's Valeant Pharmaceuticals International Inc (NYSE: VRX) has agreed to acquire gastrointestinal drugmaker Salix Pharmaceuticals Ltd (NASDAQ: SLXP) in an all-cash deal valued at about $10.1 billion. Valeant will pay $158.00 a share for the merger, which is expected to more than $500 million in annual cost savings within six months. The transaction is expected to close in the second quarter of 2015.

Evercore ISI analyst Umer Raffat revealed a deep slideshow presentation regarding the companies on Monday.

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As the first graphic shows, Salix represents the biggest, by far, of Valeant's completed deals.

The second biggest deal was that of Bausch and Lomb, which represents barely three-quarters of what Valeant has agreed to pay for Salix.  

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Salix also relies heavily on Xifaxan. This drug represents about $1.9 billion of the $3 billion consensus sales estimates for 2020.

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Of the investors surveyed by Evercore ISI, the majority like the Valent-Salix deal, but don't love it.

About 20 percent of respondents were neutral on the deal.

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The majority of readers liked the $160 acquisition price the best. Nearly 30 percent of those surveyed said they liked $150 better; 20 percent said they liked the $170 price point better.

Image credit: LadyofProcrastination, Flickr

Latest Ratings for VRX

DateFirmActionFromTo
Dec 2016Morgan StanleyDowngradesOverweightEqual-Weight
Nov 2016MizuhoDowngradesNeutralUnderperform
Nov 2016Morgan StanleyMaintainsOverweight

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Posted-In: Evercore ISIAnalyst Color Analyst Ratings Best of Benzinga

 

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