Investors weren’t buying Valeant boss Joseph Papa’s promises of a “new Valeant” Tuesday morning.
Despite beating analyst estimates, shares of the beleaguered pharmaceutical giant fell as much 10 percent after the company reported fourth quarter and full year 2016 results.
Although Valeant’s headline numbers beat expectations, analysts saw reasons to remain skeptical.
“It still doesn’t appear that management has a realistic outlook on its organic growth,” Irina Koffler of Mizuho Securities wrote in a note Tuesday.
Koffler noted that the company forecasted 2017 growth at its branded prescription and Bausch and Lomb segments despite negative to flat performance in 2016.
Total revenue fell 13 percent from the year-ago quarter and the company reported a quarterly loss of $512 million, amounting to losses of $1.47 a share.
“Over the past few months, our teams worked to stabilize and strengthen our core businesses, resolve legacy issues, improve operational processes, launch new products, and improve the balance sheet and capital structure,” Papa, Valeant’s chief executive, said in a statement Tuesday.
On an adjusted basis, Canada-based Valeant’s earnings came in at $1.26 a share on $2.4 billion in revenue, exceeding analyst expectations of $1.19 a share and $2.3 billion, respectively.
These results reflect the company’s “commitment to creating the new Valeant,” Papa said.
Valeant’s stock has fallen nearly 75 percent over the last year to $16.71 as of Monday’s close as the company contended with price-gouging and accounting fraud allegations as well as the November arrest of two former executives who accused of “engaging in a multimillion-dollar fraud and kickback scheme.”
Meanwhile, on Monday Valeant announced that it resubmitted an application to the Food and Drug Administration to get approval for latanoprostene bunod eyedrops, which are used to treat glaucoma.
The company also announced Monday that it increased the sales force for its Salix subsidiary by 40 percent. Salix focuses on the treatment of gastrointestinal disorders. Its two main drugs are Xifaxan, used for irritable bowel syndrome and Relistor, used to treat opioid-induced constipation.
Our editors found this article on this site using Google and regenerated it for our readers.
Beware: These Credit Repair Companies Could Put...
In Over Your Head? There is Help at Hand
Which Style Of Roof Is Right For You?
2012 Recruiting Trends: Companies Need To Develop...
UK Casino Compliance Changes
Understanding Available Commercial Property Insurance...
Ways To Use Gambling In Society To Make Money
5 Tips to Produce a Breath-Taking, Effective...
Things that you should know to trade the lower...
Car Accident Causes Hour Delay in Chicago
5 Steps to a Brand New You
Changes to Social Security in 2018