Valeant gives cash flow guidance of roughly $1.2 billion for 2012

By Aleesia Forni

Columbus, Ohio, Jan. 6 - Valeant Pharmaceuticals International Inc. expects adjusted cash flow from operations to be more than $1.2 billion for 2012, a $300 million increase over 2011.

Additionally, the company expects fourth-quarter 2011 cash flows from operations to exceed $230 million, and the company is "not constrained" by its cash flow.

During 2011, the company completed 11 acquisitions and lowered its average interest rate to roughly 5.7% from about 7%.

The company also raised $4.65 billion in high-yield debt and credit facilities during the year, which along with its cash flows from operations allows Valeant to fund its acquisition strategy, chief executive officer J. Michael Pearson said during the company's 2012 guidance call on Friday.

"We view the balance sheet as a way to create value for shareholders, just like the P&L," Pearson added during the call.

The company reported current debt of roughly $6.7 billion, with an average interest rate of 5.7%.

Valeant Pharmaceuticals is a Mississauga, Ont.-based specialty pharmaceutical company.

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