50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Valeant Pharmaceuticals plunges 16% after cutting guidance

Published 06/07/2016, 08:35 AM
© Reuters.  Valeant reports disappointing Q1 earnings, cuts 2016 guidance; shares plunge 16%
BHC
-

Investing.com - Valeant Pharmaceuticals International Inc (NYSE:VRX) (TO:VRX) plummeted 16% in pre-market trade on Tuesday after reporting disappointing first quarter earnings and cutting its forward guidance.

The troubled pharmaceutical reported adjusted earnings-per-share (EPS) of $1.27, falling below expectations for $1.37.

Revenue in the first three months of the year settled at $2.37 billion, compared to the consensus forecast of $2.39 billion.

Furthermore, the Canadian firm once again cut its full-year guidance to $6.60-$7.00 per share, from the prior estimate of $8.50-$9.50.

Analysts had penciled in $8.47 for 2016.

The pharmaceutical had been struggling to turn around the company after facing scrutiny from the U.S. Congress, prosecutors, and regulators over its drug pricing, business practices and accounting practices.

Just last year, the agreement with the distributor of its drugs Philidor RX Services was terminated, hurting sales.

"The first quarter's results reflect, in part, the impact of significant disruption this organization has faced over the past nine months," chairman and chief executive officer Joseph Papa said.

"This has been a difficult period for Valeant and its stakeholders, and while there are some challenges to work through in certain business operations in 2016, such as our U.S. dermatology unit, the majority of our businesses are performing according to expectations,” he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.