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."
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.