Valeant Pharmaceuticals Q2 2017 earnings were released before opening bell this morning. The drug maker reported adjusted earnings of $1.05 per share on $2.23 billion in revenue, compared to the consensus estimates of 94 cents per share in earnings and $2.23 billion in revenue. In last year’s second quarter, Valeant reported losses of 88 cents per share on $2.4 billion in revenue.
Valeant Pharmaceuticals Q2 2017 earnings
On a GAAP basis, Valeant Pharmaceuticals Q2 2017 earnings report revealed a loss of 11 cents per share, versus the 88 cents per share the company reported in the year-ago quarter. GAAP net losses amounted to $38 million, while adjusted net income was $362 million. Adjusted EBITDA grew 10% sequentially to $951 million.
Sales in Valeant’s Bausch + Lomb/ International segment fell to $1.24 billion, while Branded Rx revenues declined to $636 million. U.S. Diversified Products sales fell to $356 million.
Valeant said the year-over-year decline in revenues was due to lower volumes and prices in its U.S. Diversified Products segment as it lost exclusivity for some products and the dermatology business. Divestures also lowered its revenues, especially the divesture of its skincare business in the Bausch + Lomb/ International business.
Salix revenues grew 13% year over year and 16% organically on the back of solid growth in Xifaxan, Apriso and Relistor. Bausch + Lomb/ International sales fell 3% year over year but increased 6% organically year over year. Valeant continued to stabilize its dermatology business with the launch of the Siliq injections to treat plaque psoriasis.
Valeant updates guidance
The drug maker also said it expects to pay back over $5 billion of its debt by February. It paid $811 million of its debt using the proceeds from the sale of Dendreon Pharmaceuticals, and it also struck a $190 million deal to sell Obagi Medical Products and a $930 million to sell iNova Pharmaceuticals. Valeant’s long-term debt stood at $28.5 billion at the end of June.
Valeant expects full-year revenue to fall between $8.7 billion and $8.9 billion, a reduction from the previous outlook of $8.9 billion to $9.1 billion. The drug maker affirmed its full-year outlook of $3.6 billion to $3.75 billion for adjusted EBITDA. The updated outlook reflects impacts from the sales of two of its skincare brands and Dendreon Pharmaceuticals, although it doesn’t include impacts from the sales of iNova or Obagi.
After Valeant Pharmaceuticals Q2 2017 earnings were released, the company’s stock surged in premarket trades, climbing by as much as 9.43% to $16.82 per share.