Valeant Pharmaceuticals increases share repurchase authorisation

Valeant Pharmaceuticals has announced that its board of directors has authorised the repurchase of a further $100 million (51 million pounds) of its outstanding common stock.

This repurchase is being conducted under the company’s 2007 stock repurchase agreement and is added to the $200 million previously approved by the board in June 2007 over a 24-month period .

Valeant reports that the purpose of this repurchase programme is the raising of shareholder value, noting that the decision underlines the company’s confidence in the value of its common stock in the long term.

According to the terms of the stock repurchase programme, the firm can selectively repurchase its stock on the open market, either in privately-negotiated transactions or by other means, in any amounts that it believes appropriate.

J Michael Pearson, chairman and chief executive officer of the firm, said: “The board’s authorization of the additional $100 million to the share repurchase program underscores its continued confidence in our strategy and our commitment to enhancing shareholder value.”

He added that as the company receives funds from its planned divestitures, it has improved flexibility to make these transactions while also investing in the firm to encourage long-term growth.

Last month, Valeant announced revenues of $194.7 million for the first quarter of the 2008 financial year, a five per cent drop on the same period last year.