Valeant shares dive after reduced sales forecast, loss
By Rod Nickel and Sayantani Ghosh
(Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO: Quote)(VRX.N: Quote), Canada's biggest publicly traded drugmaker, posted a quarterly net loss on Thursday after restructuring and impairment charges, and cut its full-year revenue outlook.
Valeant shares fell 4.6 percent to $104.02 in U.S. trading, and 5 percent to C$108.73 in Toronto action, hitting one-month lows. U.S.-listed shares are up about 74 percent in 2013.
The company, which bought contact lens maker Bausch & Lomb in August for $8.7 billion, said it expects full-year revenue of $5.7 billion to $5.9 billion, down from its earlier forecast of $5.8 billion to $6.2 billion.
The lower forecast reflected the early launch in August of generic competition for its dermatology product Retin-A Micro, unfavorable foreign exchange fluctuations and slower sales of Bausch & Lomb surgical equipment, Chief Financial Officer Howard Schiller said.
Valeant also tightened its full-year adjusted profit range to between $6.11-$6.16 per share from a prior estimate of $6.00-$6.20 per share.
The lowered earnings outlook was not as negative as it appeared, since it would have increased if not for the early generic competition for Retin-A and currency factors, J.P. Morgan analyst Chris Schott said in a note to clients.
Valeant has aggressively pursued acquisitions since its 2010 takeover by Biovail Corp, which assumed the Valeant name. It has favored segments where patients often pay out of pocket, like ophthalmology and dermatology, cutting its exposure to cost-sensitive insurers.
The company said it expects to realize synergies of more than $850 million from the Bausch & Lomb acquisition. Continued...