Valeant Pharmaceuticals International, Inc. (NYSE:VRX) posted an adjusted quarterly profit because of weak sales of its dermatology products and irritable bowel syndrome drug. The company had cut full year profit and revenue forecasts.
The stock fell almost 30 percent on premarket trading this morning. Before the earnings release, Valeant had fallen over 90 percent since 2015 when the company’s pricing and business became under review by politicians and regulators.
The Company stated that it expected a total revenue of $9.55-$9.65 billion for the year, down from estimate of $9.9 billion - $10.1 billion. Adjusted earnings are now estimated to be $5.30-$5.50 per share, reduced from previous estimate of $6.60-$7.00.
“We had assumed Valeant would experience some tailwinds from pricing, higher rebates, and increased prior-authorizations,” in a research note by Wells Fargo analyst David Maris. “However, it appears Valeant’s core business continued to deteriorate, as we had feared, and the acceleration management predicted is not materializing.”
Valeant reported a net loss of $1.22 billion or $3.49 per share. The company has over $30 billion in debt, stating that it was in talks with third parties to sell its Salix business and other assets last week. The company didn’t name the potential buyers.
“This past quarter, we made further progress toward establishing the new Valeant,” said CEO Joseph Papa.