NEW YORK (AP) – Canadian drugmaker Valeant Pharmaceuticals International Inc. announced that it expects to reach the high end of its profit and revenue forecasts for the year.
During an investor presentation, Valeant said it expects to reach the high end of its previous outlook. The company now projects an adjusted profit of $4.45 and $4.70 per share and revenue of $3.4 billion to $3.6 billion. Those estimates do not include several acquisitions Valeant recently completed, or deals that have been announced but have not yet closed.
Analysts had been forecasting income of $4.46 per share and revenue of $3.5 billion on average, according to FactSet.
Valeant has announced about a dozen acquisitions this year. It has expanded its business in Russia, Eastern Europe, Latin America, and Southeast Asia through acquisitions, as well as through partnerships with companies like Gerot Lannach of Austria. Earlier this year it paid $425 million to buy Dermik, the dermatology business of French drugmaker Sanofi.
On June 15 it said it would pay about $312 million for OraPharma, which makes specialty oral health care products.
Stifel Nicolaus analyst Annabel Samimy said Valeant’s comments made it sound like analyst estimates for the second quarter are too high. Analysts expected a profit of $1.10 per share on average, and since the presentation they have cut their estimates to $1.06 per share. However Samimy continues to forecast a profit of $4.55 per share for the year and said Valeant could exceed that total.
Jefferies & Co. analyst Corey Davis said the company does a lot of business in Europe, so Valeant to affirm the upper end of financial forecast “is a testament to the strength and durability of its business model.”
Date: June 22, 2012
Source: Associated Press
