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Valeant Ups Bond Offering to $400M

Aliso Viejo-based drug maker Valeant Pharmaceuticals International upped the amount of a debt offering last week.

Valeant, which makes skin, neurology, antiviral and generic drugs, sold $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.

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.

Valeant 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.

Last 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.

—Michael Lyster

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