valeant

Valeant’s tough year gets worse with Q3 loss of $1.22 billion

pharmafile | November 9, 2016 | News story | Research and Development Q3, Valeant, loss 

It’s easy to say that Valeant hasn’t had a great year so far. Unfortunately for those concerned, the outlook for 2017 doesn’t look much rosier.

Any company that chooses to publish its financials on the day of presidential voting probably doesn’t want the results to be looked at much and so it proved for Valeant Pharmaceuticals. The company released that they had made a $1.22 billion loss in the third quarter, as a result of a write-down of Salix Pharmaceuticals. Salix, which makes irritable bowel syndrome drug Xifaxan, has reportedly been interesting Takeda in a potential $10 billion sale. As well as this news, revenue fell by 11% to $2.48 billion with profit down due to smaller-than-expected sales of dermatology products and Xifaxan.

Looking ahead, the picture does not become much prettier for Valeant. Chief financial officer, Paul Herendeen, reportedly downplayed any estimates of an immediate bounce-back for the company in 2017. Speaking regarding growth for 2017, he told investors: “We will dig our way out of part of the growth hole … but we will not crawl all the way out of that hole…It will be a down year.”

He also told investors that Nitropress and Isuprel, two of Valeant’s neurology drugs, will also lose market exclusivity next year and there will be a tough time for the generics side of the business.

All told, it makes for a difficult 2016 for Valeant and there is still the cloud of an investigation into former CEO and CFO, who could potentially face criminal charges for accounting fraud.

 Ben Hargreaves

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