Valeant profit beats estimates as U.S. sales stay strong
Drugmaker Valeant Pharmaceuticals International Inc (VRX.TO) (VRX.N) reported a better-than-expected quarterly profit, helped by strength in its dermatology business in the United States.
The company also raised its earnings and revenue forecast for the year to reflect sales of recently acquired Salix Pharmaceuticals’ irritable bowel syndrome drug, Xifaxan.
The U.S. Food and Drug Administration approved Xifaxan, also known as rifaximin, in May. Valeant acquired the drug with its $11-billion purchase of Salix earlier this year.
Valeant said it expects 2015 revenue of $10.7 billion-$11.1 billion, up from its $10.4 billion-$10.6 billion. It also raised its adjusted profit forecast to $11.50-$11.80 per share, from $10.90-$11.20.
The company, under Chief Executive Michael Pearson, has grown rapidly through acquisitions.
Valeant said last week it would buy Egypt’s largest drugmaker, Amoun Pharmaceutical, for about $800 million.
Pearson, named chief executive in 2008, started snapping up dermatology products such as sunscreen and anti-aging products as part of aggressive revenue growth targets.
The net loss attributable to the company was $53 million, or 15 cents per share, in the second quarter ended June 30, compared with net profit of $125.8 million, or 37 cents per share, a year earlier.
Cash earnings, or profit adjusted for one-time items, was $2.56 per share, above the average analyst estimate of $2.46 per share, according to Thomson Reuters I/B/E/S.
Total revenue rose to $2.73 billion, above analysts’ average estimate of $2.54 billion.
(Reporting by Ankur Banerjee and Narottam Medhora in Bengaluru; Editing by Don Sebastian and Sriraj Kalluvila)