World Economy

Strong Sales Help Valeant Top Estimates

Strong Sales  Help Valeant  Top EstimatesStrong Sales  Help Valeant  Top Estimates

Valeant Pharmaceuticals International Inc, which is under fire for massive price hikes of its two heart drugs, reported a better-than-expected quarterly profit, boosted mainly by strong performance in its US dermatology business, Reuters reported. Net income attributable to the company fell to $49.5 million, or 14 cents per share, for the third quarter ended Sept. 30, from $275.4 million, or 81 cents per share, a year earlier. Cash earnings, or profit adjusted for one-time items, was $2.74 per share, above the average analysts’ estimate of $2.70 per share, according to Thomson Reuters. Revenue rose to $2.79 billion from $2.06 billion a year earlier, topping analysts’ expectation of $2.78 billion. Sales from US dermatology business rose 53% to $465.5 million. Valeant also increased its full-year revenue forecast to $11 billion-$11.2 billion from $10.7 billion-$11.1 billion estimated previously. The company also increased cash earnings estimate to $11.67-$11.87 per share from $11.50-$11.80 per share. The Canadian drugmaker said last week it had been subpoenaed by US prosecutors, seeking details on its drug pricing and distribution practices. The company tripled the price of its heart drug Isuprel and raised the price six-fold for another heart drug, Nitropress, after buying them in February. While the magnitude of the price hikes has put Valeant in political crosshairs, raising drug prices is not illegal in the United States.