Valeant Targets Egypt's Amoun Pharma
Canada's Valeant in talks to buy Egyptian drugmaker Amoun PharmaceuticalReuters

Valeant Pharmaceuticals International is reportedly in talks to buy Egyptian drugmaker Amoun Pharmaceutical to expand its veterinary and human medicines portfolio.

A deal could value Amoun at between $700m (£451m, €629m) to $800m, Bloomberg reported.

If Amoun fails to find a buyer, it could consider a London floatation, the report added.

Canada-based Valeant's stock has gained some 68% so far this year in Toronto trade and some 103% over the past year.

Amoun's shareholders include emerging market-focused private-equity arms of Capital Group, Concord International Investments, and New York-based fund Rohatyn Group.

Valeant CEO Michael Pearson, speaking at the firm's annual shareholder meeting at Laval, on 19 May, said he sees emerging middle-class markets in Asia, the Middle East and Latin America as prime growth territories.

Pearson also said the firm's Asian division will pass $1bn in revenue this year, and that he expects all units to grow at least 10% annually, the Financial Post reported.

Pearson said: "When you have a rise in income in markets, the per cent they spend on healthcare increases — so it's a bet on the middle class.

"I would expect Asia to grow faster. We should be making acquisitions five years from now and maybe it should be $5bn."

Goldman Sachs

Amoun's owners hired Goldman Sachs as an adviser, Bloomberg reported in March. Shareholders were working with Goldman Sachs to pursue options including a sale, Chief Executive Officer Mohamed Roushdy said back then.

In March, Valeant beat rival Endo International to acquire bowel drugmaker Salix Pharmaceuticals for $11.1bn.

In 2014, Valeant lost out to Actavis in an attempt to buy out Botox-maker Allergan through a joint venture with Bill Ackman's Pershing Square Capital Management.