UPDATE 3-Valeant shares fall on lowered 2014, 2015 forecasts

Thu Jul 31, 2014 4:04pm EDT
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(Adds CEO, analyst comments, sales of Bausch & Lomb brands)

By Ransdell Pierson

July 31 (Reuters) - Valeant Pharmaceuticals International Inc, embroiled in a bitter battle to take over Botox-maker Allergan Inc, reported disappointing quarterly earnings and cut its 2014 and 2015 profit forecasts on Thursday, sending its shares down 7.2 percent.

"People were disappointed in Valeant's outlook for the remainder of 2014, and especially its 2015 earnings guidance, which is about $1 per share below expectations," said Raghuram Selvaraju, an analyst with Aegis Capital.

The Laval, Quebec-based company teamed up with activist investor Bill Ackman on April 21 to make a cash and stock offer for Allergan now worth about $50 billion. Allergan says the deal would hurt its growth and compromise shareholders.

Even as it lowered its profit forecasts, Valeant argued that second quarter results should bolster its attractiveness to Allergan shareholders.

Valeant, which paid $8.7 billion for eye care company Bausch & Lomb last year, said sales of those products rose 12 percent to $891 million in the quarter.

"They'll use that to argue that the Allergan business won't go to pot if acquired by Valeant," Selvaraju said.

Allergan has questioned Valeant's marketing ability and said it believed the Bausch & Lomb products were stagnating.   Continued...