The Motley Fool: Can Valeant Continue This Growth?

Canada's Valeant Pharmaceuticals (NYSE: VRX  ) is a good example of what can be done when a company chooses to go its own way and zig while others zag. In an industry that had becoming increasingly skittish about mergers and acquisitions as a growth driver, Valeant has done about 60 deals in the last six years. In an industry that is increasingly spinning off divisions and focusing on "core operations, Valeant management is willing to go wherever opportunity takes them – prescription drugs, devices, OTC, and branded generics.

The potential merits of Valeant's approach certainly have not gone unnoticed, as the shares have nearly doubled over the past year. Valeant's uncommonly aggressive use of leverage does add some risk to the story, but the company has used its balance sheet to build very sizable franchises in dermatology, eye care, and aesthetics, and the opportunity to launch a "merger of equals" and leverage better operating and tax efficiency could propel the shares further.

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Can Valeant Continue This Growth?