Valeant Pharmaceuticals International is determined to grow through acquisitions. Already actively pursuing a deal with Allergan, the maker of Botox, Valeant is reportedly seeking another contact lens company. CEO Michael Pearson said the company “will not be content to remain the No. 4 global player in the contact lens industry.”
Valeant has a history of acquisitions, and its present structure resulted from the merger of Biovail Corporation and Valeant Pharmaceuticals in 2010.
Over the past year, Valeant has made a number of acquisitions in pharmaceuticals, medical devices, and related fields.
Here are its most recently reported deals:
Valeant makes about 25 deals each year. Some of them are large, although the majority are too small for financial reporting. This strategy is what I call “taking frequent small bites of the apple,” — in other words, making multiple, smaller acquisitions rather than pursuing only large transformative ones.
With smaller deals you can be more focused in the purpose of your acquisition, which generates results and minimizes risk. Smaller acquisitions can also be easier to integrate once the deal closes.
Once you’ve completed the first acquisition, you can take some time to adjust to your newly merged company. When you’re ready, you can pursue another deal to drive growth.