Newspaper article The Canadian Press

TSX Rises amid Major Pharmaceutical Deal Making, Solid Canadian Pacific Earnings

Newspaper article The Canadian Press

TSX Rises amid Major Pharmaceutical Deal Making, Solid Canadian Pacific Earnings

Article excerpt

TSX advances amid acquisitions, earnings

--

TORONTO - Strong earnings reports and major deal-making in the pharmaceutical sector pushed the Toronto stock market modestly higher Tuesday.

The S&P/TSX composite index gained 62.29 points to 14,555.97. The Canadian dollar closed down 0.11 of a cent to 90.68 cents US.

U.S. indexes were also positive with the Dow Jones industrials ahead 65.12 points to 16,514.37. The Nasdaq composite index climbed 39.91 points to 4,161.46 and the S&P 500 index was up 7.66 points at 1,879.55.

Canadian drug company Valeant Pharmaceutical International Inc. (TSX:VRX) (NYSE:VRX) has teamed with Bill Ackman's Pershing Square Capital Management in a cash and stock bid worth about US$48 billion for Botox maker Allergan based on Valeant's closing chsre price of US$135.41 in New York. Valeant shares gained $10.62 or 7.65 per cent to close at C$149.38 on the Toronto Stock Exchange.

If the deal goes through, it would give Valeant an array of other cosmetic and eye drugs and add to a string of more than 50 acquisitions that have made it one of Canada's largest drugmakers

But some analysts warn that this acquisition strategy could be more difficult to execute as the economic recovery continues to take hold.

"The later we move on into the recovery, the more of a premium companies will pay as a buyer because there's more competition and more interest in doing that deal, and the company you're buying, generally their earnings per share have grown because of the fact that the economy is growing as well," said Kash Pashootan, portfolio manager at First Avenue Advisory in Ottawa, a Raymond James company.

On the earnings front, Canadian Pacific Railway (TSX:CP) had $254 million of net income in the first quarter, up from $217 million a year earlier. Net income per share increased 16 per cent year over year, rising to $1. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.