According to Valeant management and more to the point -- various industry analysts - Valeant is poised and ready for some serious M&A activity in 2014 to drive it to a top 5 position for market valuation amongst its pharmaceutical bretheren by 2016. Since Merck currently sits 5th at $153 B, then Valeant would have that target in its sights. Right now, Valeant sits in 14th place on the list just ahead of Teva Pharmaceuticals in 15th. They got their work cut out for them.
Analysts at Aegis Capital say this is possible and names like Actavis, Teva and Allergan have been thrown out as possible takeover targets for Valeant to spur them toward their $150 B market cap goal. Analysts say Valeant should move fast now while money is cheaper and before the Fed might raise interest rates that will affect borrowing for the splurge. See Bloomberg.
For the record, the Top 15 Pharma companies by market capitalization are in order:
- Johnson & Johnson
- Roche Holding Co.
- Novartis AG
- Pfizer, Inc.
- Merck & Co.
- GlaxoSmithKline Plc
- Novo Nordisk A/S
- Bristol-Myers Squibb Co.
- AstraZeneca Plc
- AbbVie Inc.
- Eli Lilly & Co.
- Abbott Laboratories
- Valeant Pharmaceuticals International Inc.
- Teva Pharmaceutical Industries Ltd.
Posted by Bruce Lehr Jan 31st 2014.