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4 Pictures Every Valeant-Salix Investor Should See

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.


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.  


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


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.


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

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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