Special Committee on Aging Frontruns Valeant Pharmaceuticals Q1 Earnings Release by BoredWithTheNoise
Entangled within the epic data dump the Senate Committee on Aging gave the world there is some troubling guidance provided by Valeant’s CFO, Rob Rosiello. In response to the interrogatories posed by the committee regarding the pricing of a handful of Valeant Pharmaceuticals drugs, Mr. Rosiello (response starts on pg 17) was required to disclose the ratio of revenues that each of those drugs represented in relation to company wide numbers. To set the baseline for those ratios, Mr. Rosiello provided the following table (pg. 21) of his response that details financial information for the company:
- i. Net Product Sales
- j. COGS
- k. Gross Margin
- l. Net Income
There are a couple of very interesting aspects of this disclosure.
What can past market crashes teach us about the current one?
- It allows you to look back to see how previously disclosed margins, COGS and revenues compare, pre- vs. post- restatement (fun times)
- More interestingly, it gives you a direct line of sight on what Q1 2016 will look like.