Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty pharmaceutical company Valeant Pharmaceuticals (NYSE:VRX) spiked higher by as much as 17% following a report from The Wall Street Journal that indicates that Valeant may be close to purchasing privately held eye care products maker Bausch & Lomb.

So what: With the article citing unnamed sources, the deal -- which would value Bausch & Lomb at $9 billion -- could be announced as early as next week, although the parties involved noted it could fall apart just as easily. The current owners of Bausch & Lomb, Warburg Pincus, have been looking to part ways with their investment over the past year that they paid just $4.5 billion for in 2007.

Now what: Given a rapidly aging baby boomer population, eye product maker Bausch & Lomb could be the perfect spark for Valeant to grow over the long run. Investors certainly seem to like the deal, but I'd remain cautious about making a move one way or the other until a buyout is announced or talks break apart. There's usually little sense in chasing rumors!

Craving more input? Start by adding Valeant Pharmaceuticals to your free and personalized watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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