Aegis Comments on FDA 510(k) Approval of Bausch + Lomb's VICTUS (VRX)

Aegis Capital affirms Valeant Pharmaceuticals (NYSE: VRX) at Buy with a price target of $180 following news earlier that the company's wholly-owned subsidiary, Bausch + Lomb, has received 510(k) clearance from the FDA for the VICTUS Femtosecond Laser Platform for laser-assisted lens fragmentation during cataract surgery.

Analyst Ram Selvaraju commented, In our view, this approval demonstrates the growth potential of the Bausch + Lomb product portfolio and also showcases Valeant's continued commitment to launching new products in high-growth, high-margin areas. We also continue to believe that certain institutional investors will be successful in calling a special shareholder meeting of Allergan shareholders near-term, and that Valeant management have made a compelling enough case to Allergan shareholders that there is a real possibility of unseating the majority, if not all, of the Allergan board at this meeting.

Selvaraju offered additional insight: The VICTUS platform offers a number of different lens fragmentation patterns, depending on the grade of cataract being treated and user preference. The fragmentation procedure, which follows a capsulotomy (an incision made into the capsule of the crystalline lens of the eye), uses the femtosecond laser to split the cataractous lens into sections, which is followed by phacoemulsification for cataract removal. The use of the VICTUS platform can reduce the energy required for phacoemulsification by as much as 50%. Bausch & Lomb has been installing VICTUS platforms in leading surgery centers globally since it received CE Mark designation in November 2011 in Europe and FDA clearance in July 2012. It is now one of the only femtosecond lasers in the U.S. with clearance for corneal flap creation during LASIK surgery, anterior capsulotomy, penetrating arcuate cuts/incisions in the cornea and laser-assisted cataract surgery lens fragmentation. The VICTUS platform has received additional CE marks for INTRACOR treatment used for flapless intrastromal correction; corneal incisions; penetrating keratoplasty; and creation of intra-stromal incisions for intra-corneal ring segments.

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Valeant Pharmaceuticals closed at $121.71 yesterday.

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