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The head office of Valeant Pharmaceuticals in Montreal.
The head office of Valeant Pharmaceuticals in Montreal.
(Ryan Remiorz/THE CANADIAN PRESS)

Investors should be wary of Valeant’s big ambitions

You have to give Valeant Pharmaceuticals International Inc. credit for thinking big: It wants to become one of the world’s five most valuable pharmaceutical companies by the end of 2016.

Let’s put that into perspective. It implies that its market capitalization, or the value of all its shares, will more than triple to about $150-billion (U.S.) from $42-billion. And it assumes that the current fifth-largest company, Merck & Co., fails to budge over the next few years.