Valeant Pharma takes 1Q loss on Medicis costs
NEW YORK (AP) — Canadian drugmaker Valeant Pharmaceuticals International Inc. said Thursday it took a loss in the first quarter on costs related to its purchase of dermatology products maker Medicis Pharmaceutical.
Valeant bought Medicis in December for $2.6 billion, and the company reported greater selling, general and administrative spending in the first quarter as a result. Valeant also took about $57 million in one-time charges related to the deal. However it said its revenue grew 25 percent compared to a year ago, and its U.S. sales nearly doubled.
Valeant said it lost $27.5 million, or 9 cents per share, in the latest quarter. A year ago the company took a loss of $12.9 million, or 4 cents per share. Valeant said its income totaled $1.30 per share if one-time items are excluded, up from $1.14 per share in the first quarter of 2012. Revenue climbed to $1.07 billion from $856.1 million.
Analysts expected the company to report net income of $1.25 per share and $1.09 billion in revenue, according to FactSet.
In the first quarter of 2012 Valeant was required to sell some of its dermatology products to Mylan Inc. as part of its acquisition of Dermik, the dermatology division of French drugmaker Sanofi.
The company said it now expects to report adjusted net income of $5.55 to $5.85 per share in 2013, up from an earlier estimate of $5.45 to $5.75 per share. Valeant still forecasts $4.4 billion to $4.8 billion in revenue.
Analysts are projecting net income of $5.60 per share and revenue of $4.61 billion on average.
Valeant shares lost 66 cents to $73.03 in morning trading.