Valeant revenue forecast misses estimates as competition heats up


(Reuters) – Valeant Pharmaceuticals’ (VRX.N) (VRX.TO) forecast for 2018 revenue fell below Wall Street estimates, as the company faces intensifying competition for some of its major products. The Canada-based drugmaker’s U.S.-listed shares fell 3.4 percent to $17.87 in premarket trading on Wednesday. Valeant, saddled with some $25 billion in debt thanks to a years-long acquisition binge under former CEO Mike Pearson, has been selling off assets to free up cash. It has sold off its Dendreon cancer treatment business, as well as some skin care brands, while sharpening its focus on more profitable businesses such as its Bausch and Lomb eye care products. The company on Wednesday forecast 2018 revenue of $8.10 billion to $8.30 billion. Analysts on average were expecting $8.34 billion, according to Thomson Reuters I/B/E/S. Valeant reported a net income of $513 million or $1.45 per share in the quarter ended Dec. 31, compared to a loss of $515 million or $1.47 per share a year earlier. It recorded a one-time benefit of $1.32 billion as a result of new U.S. tax laws. Excluding one-time items, Valeant earned 98 cents per share, edging past analysts’ average estimate of 97 cents. Revenue fell 10 percent to $2.16 billion, just shy of analysts’ expectations of $2.17 billion. Reporting by Manas Mishra in Bengaluru; Editing by Sai Sachin RavikumarOur Standards:The Thomson Reuters Trust Principles.
Source: Reuters