Valeant Pharmaceuticals released its third quarter earnings report before opening bell this morning, posting GAAP earnings of 14 cents per share, cash earnings of $2.74 per share, and revenue of $2.79 billion. In the same quarter last year, the drug maker reported GAAP earnings of 81 cents per share and revenue of $2.06 billion.
Valeant records organic growth
Valeant reported a negative impact of $172 million from foreign currency exchange and a 13% organic same store sales rate, which makes the third quarter the fifth one in a row in which it had more than 10% organic sales growth. The company said its U.S. businesses have continued to outperform, especially its dermatology and contact lens units. Sales in China grew 23%, while South Korean sales increased 15% and sales in Mexico grew 10%. Total company growth amounted to 8.2% in volume and 4.4% in price.
Excluding the impact from the loss of patent exclusivity on Targretin capsules, organic same store sales would have grown 14%. Revenue from Salix amounted to $461 million. Valeant expects the full impact from the release of the generic form of Xanazine to be fully felt during the fourth quarter.
One of Valeant’s big strategies for growth has been through acquisitions, and the company expects the previously announced Amoun acquisition to close sometime today. Other deals that closed recently include the acquisitions of Sprout, Synergetics and brodalumab.
Valeant raises guidance
Valeant management also increased their revenue guidance for the fourth quarter. The previous guidance was between $3.2 billion and $3.4 billion, and the new guidance is a range of $3.25 billion to $3.45 billion. They also upped their cash earnings guidance for the full year to a range of between $4 and $4.20 per share from the previous range of between $3.98 and $4.18 per share.
For the full year, Valeant management expects revenue of between $11 billion and $11.2 billion, up from their previous guide of between $10.7 billion and $11.1 billion. They also expect more than $3.35 billion in adjusted cash flow from operations and a more than 10% increase in same store organic sales growth.
As of this writing, shares of Valeant Pharmaceuticals were up 2.51% at $182 per share.