* To cut jobs at US and Canadian operations of new co
* Job cut a part of integration plans
* Says identified $300 mln in cost synergies
Sept 7 U.S.-based Valeant Pharmaceuticals
International (VRX.N), which agreed to be bought by Canada's
Biovail Corp BVF.TO in June, said they would cut about 25
percent of the combined company's U.S. and Canadian workforce
as part of the integration plans.
"Over $300 million of cost synergies have been identified
and we expect to realize well north of $200 million in 2011,"
Valeant Chief Executive J. Michael Pearson said in a letter to
"The rest will be captured in 2012," Pearson, who will be
heading the new company, added. The companies have a combined
workforce of about 4,400.
Combined cash tax rate by the end of 2012 is expected to be
about 15 percent. The companies had agreed to merge in a
complex deal that is structured to take advantage of tax breaks
and other savings. [ID:nSGE65K07S]
Pearson said that while the new company would continue to
invest in research and development, it would focus on acquiring
smaller in-line products that can be grown "dramatically"
through the company's infrastructure and commercial processes.
Valeant shares closed at $59.98 Friday on the New York
Stock Exchange, while Biovail shares closed at C$24.94 on the
Toronto Stock Exchange.
Biovail shares have risen 68 percent, while the Valeant
stock has increased 31 percent since the news of the deal.
(Reporting by Esha Dey in Bangalore; Editing by Maju Samuel)