UPDATE 1-Valeant Q1 profit beats Street; to acquire Aton Pharma

Mon May 3, 2010 9:01am EDT

* Q1 adj EPS $0.64 vs est $0.60 per share

* To acquire privately held Aton Pharma

* Deal to add to earnings in 2010

* Sees 2010 adj EPS $2.65-$2.90 vs prior view $2.45-$2.70

May 3 (Reuters) - Valeant Pharmaceuticals International (VRX.N) posted a better-than-expected quarterly profit and said it agreed to acquire privately held Aton Pharma Inc for about $318 million.

The company said the acquisition of Aton Pharma, which is focused on ophthalmology and certain orphan drug indications, will strengthen its neurology and other products segment.

The deal is expected to add to earnings in 2010.

For the first quarter, income from continuing operations was $35.6 million, or 43 cents per share, compared to $30.8 million, or 37 cents per share, a year ago.

Excluding items, it earned 64 cents a share in the latest quarter. Total revenue rose 30 percent to $232 million.

Analysts on average were expecting a profit of 60 cents a share and revenue of $224.7 million, according to Thomson Reuters I/B/E/S.

The company also raised its 2010 adjusted EPS view to a range of $2.65 to $2.90, from the earlier outlook of $2.45 to $2.70.

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Shares of Valeant closed at $45 Friday on the New York Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Roshni Menon)