Valeant 3Q profit sinks on acquisition costs
Valeant Pharmaceuticals International Inc.'s third-quarter earnings sank 81 percent, as acquisition-related costs weighed on the Canadian drugmaker. Its adjusted results topped Wall Street expectations, however.
Valeant said Friday its expenses in the three months that ended Sept. 30 included $145.3 million in costs tied to acquired, in-process research and development. The drugmaker said most of that was related to the write-off of a dermatology program asset.
The company's selling, general and administrative expenses climbed 40 percent to $188.7 million and included stock-based compensation expenses from Valeant's combination with former competitor Biovail Corp. in late 2010.
Overall, Valeant earned $7.6 million, or 2 cents per share, in the three months that ended Sept. 30, up from $40.9 million, or 13 cents per share, a year ago.
Adjusted earnings, which exclude many of the acquisition-related costs, were $1.15 per share. Analysts surveyed by FactSet expected, on average, earnings of $1.12 per share.
Revenue climbed 47 percent to $884.1 million from $600.1 million a year ago. Analysts expected revenue of $875.5 million.
Valeant also narrowed its 2012 earnings expectations. It now expects earnings of $4.60 to $4.65 per share, compared to its previous forecast of $4.55 to $4.75 per share. The drugmaker is maintaining revenue guidance that forecasts a range of $3.4 billion to $3.6 billion.
Analysts expect, on average, 2012 earnings of $4.52 per share on $3.51 billion in revenue.
Its shares fell 70 cents, or 1.2 percent, to $56.06 in premarket trading.