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Valeant Ups Bond Offering to $400M

Aliso Viejo-based drug maker Valeant Pharmaceuticals International said Wednesday it upped the amount of a debt offering announced a day earlier.

Valeant, which makes skin, neurology, antiviral and generic drugs, now is selling $400 million worth of bonds due in 2020, up from $350 million.

The company plans to use the proceeds to pay off debt due this year and to finance the recently announced acquisition of a Brazilian generic drug maker.

Last month, Valeant said it was buying an undisclosed Brazilian company for $28 million.

Valeant is buying the Brazilian drug maker, which had 2009 sales of $19 million, to expand its generic and skin products, it said.

The name of the company being acquired wasn’t released out of safety concerns for the sellers in Brazil, where kidnapping is a problem, according to a Valeant spokeswoman.

The company also is paying $28 million for a 165,000-square-foot plant near Sao Paulo that’s been approved to produce solid, semi-solid and liquid drugs.

That plant is set to allow Valeant to shut down what it called a “subscale” plant in Brazil, Chief Executive J. Michael Pearson said.

The Brazilian deals are designed to boost Valeant’s skin drugs.

The company’s made several buys of companies here and abroad to boost its dermatology business.

It spent nearly $22 million in December for Canada’s Laboratoire Dr. Renaud, a maker of skin products sold in spas.

In September, it paid $69 million and issued 162,500 shares of its stock for Private Formula International Holdings Pty Ltd., an Australian maker of skin products sold without prescriptions.

In October, Valeant paid $18 million to buy the rights to several skin drugs made by a Polish company.

Valeant’s goal is to boost dermatology revenue to $500 million this year.

The company doesn’t specifically break out dermatology sales in its results. Valeant includes them in its specialty pharmaceuticals group, which made up half of the company’s $830.5 million in 2009 revenue.

Earlier this week, Valeant said in a filing with the Securities and Exchange Commission that it expects sales for the recently ended quarter of more than $220 million, which would be up about 25% from a year earlier.

Wall Street analysts on average had been expecting sales of $231 for the quarter.

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