Valeant Pharmaceuticals International Inc. boosted its outlook
for the year on Wednesday after reporting better-than-expected
results for the first quarter despite currency headwinds.
For 2015, Valeant is now projecting per-share earnings of $10.90
to $11.20, compared with its previous guidance for $10.10 to $10.40
a share in earnings. The company is now expecting revenue of $10.4
revenue to $10.6 billion, up from its previous range of $9.2
billion to $9.3 billion in revenue.
Valeant completed its $11.1 billion acquisition of Salix
Pharmaceuticals Ltd. earlier this month, after raising its takeover
bid by about a billion dollars in March to knock out rival bidder
Endo International PLC.
Salix makes drugs to treat stomach disorders, a fast-growing
area of specialty pharmaceuticals. Valeant said Wednesday that it
expects Salix to contribute $1 billion in revenue this year.
A serial acquirer, Valeant has grown quickly in recent years by
buying companies with proven drugs, then cutting costs, rather than
depending on risky research in early-stage products.
In the latest quarter, Valeant said emerging markets such as
Asia and Mexico and its U.S. contact lens and dermatology
businesses helped drive a 15% increase in same-store sales organic
growth.
Overall, for the quarter ended March 31, profit was $73.7
million, or 21 cents a share, compared to a prior-year loss of
$22.6 million, or 7 cents a share.
Excluding items, per-share earnings were $2.36, topping the
company's forecast for $2.30 a share in earnings
Revenue improved 16% to $2.19 billion, while analysts polled by
Thomson Reuters had forecast $2.15 billion in revenue.
Valeant estimated foreign currency brought down its revenue by
$140 million and its adjusted earnings by 12 cents.
Looking to the current quarter, Valeant forecast per-share
earnings of $2.40 to $2.50 and revenue of $2.45 billion to $2.55
billion. Analysts polled by Thomson Reuters had forecast $2.43 a
share in earnings and $2.56 billion in revenue.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires