What’s the deal with Valeant Pharmaceuticals International Inc. and conference calls?
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“This has been a hard period for Valeant and its stakeholders, and while there are some challenges to work through in certain business operations in 2016, such as our USA dermatology unit, the majority of our businesses are performing according to expectations”, CEO Joseph Papa said while announcing the results.
Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) were down 21 percent to $22.86 after the company reported weaker-than-expected earnings for the first quarter and reduced its full year adjusted earnings outlook. More significantly, it cut full-year forecasts for revenue and profitability. Valeant was previously a stock market darling and briefly Canada’s most valuable publicly traded company as its shares soared above $260 last summer.
On the one hand, it isn’t. The stock has fallen 88 percent in the last 12 months.
Valeant Pharmaceuticals International, Inc. says it had a US$373.7 million loss in its first quarter and its adjusted income was down 37 per cent from a year earlier.
Valeant, which was once the pharmaceutical industry darling, began to falter in March when it slashed its earnings guidance, shocking the market. Quarterly revenues were up nine percent to $2.4 billion, but weaker than expected.
The next one year’s EPS estimate is set at 10.18 by 18.00 analysts while a year ago the analysts suggested the company’s EPS at $8.47.
Valeant’s same-store sales, or sales from businesses that have been owned for at least a year, declined 14%. Valeant posted 9% year-over-year increase in revenues.
The maker of toenail fungus cream Jublia and anti-depressant drug Wellbutrin, which has faced intense scrutiny for business and accounting practices, missed first-quarter profit estimates on weakness in its dermatology business.
The drugmaker posted revenue of $2.37 billion in the period, beating Street forecasts. Papa later said the company has that data but feels the adjusted earnings metric gives investors a better insight into Valeant’s operations.
“I believe that our commitment to bring innovative products to the market with an exciting new product pipeline continues to be undervalued and misunderstood, and I hope to change that perception”, said CEO Joseph Papa in a call to investors after the company released the report. (GBSN), a molecular diagnostics company, recently declared it has closed its formerly declared public offering of 3.16 million units at a public offering price of $1.90 per unit.
The Quebec-based drug maker’s loss, reported in US currency, was equal to $1.08 per share.
The Canadian pharmaceutical disclosed last week that it had been served with default notices from two lenders because the first-quarter earnings report had been postponed.
Valeant’s delay in issuing the financial report for the first three months of 2016 had prompted bondholders to warn it was in danger of defaulting on their agreements if the filing wasn’t made by late July or early August.
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After a flurry of questions from analysts, Papa said that some patients had been receiving drugs before it was learned whether the patients’ insurer would pay for them, resulting in a loss.
