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Valeant Reports Second Quarter 2015 Financial Results

Published: Jul 23, 2015

LAVAL, Quebec, July 23, 2015 /PRNewswire/ --

2015 Second Quarter Results

  • Total Revenue $2.7 billion; an increase of 34% over the prior year
    • Excluding negative impact of foreign exchange ($173 million) and the contribution of Salix ($313 million), revenue increased 27% over the prior year
  • Same Store Sales Organic Growth was 19%, driven by:
    • U.S. businesses, driven by the strength of dermatology, contact lenses, dental and Obagi
    • Emerging markets including China, the Middle East/North Africa, and Russia
  • GAAP EPS Loss of $0.15; Cash EPS $2.56
    • Excluding negative impact of foreign exchange ($0.13) and the negative contribution of Salix ($0.04) , Cash EPS would have been $2.73, a growth rate of 43%
  • GAAP Operating Cash Flow $411 million; Adjusted Operating Cash Flow $773 million
    • Excluding Salix, GAAP Operating Cash Flow $714 million
  • Salix Revenue was $313 million
    • Strong Xifaxan script uptake following IBS-D approval
    • Salix wholesaler inventory levels reduced from 4-5 months to 3-3.5 months

Continued Progress of R&D pipeline

  • New Drug Application (NDA) submitted for RELISTOR® (methylnaltrexone bromide) Tablets
  • NDA submitted for VESNEO (latanoprostene bunod ophthalmic solution) 0.024%

Full Year 2015 Guidance Update

  • Increasing 2015 Total Revenue to $10.7 - $11.1 billion up from $10.4 - $10.6 billion
    • Salix revenue expected to be ~$1.2 billion
  • Increasing 2015 Cash EPS to $11.50 - $11.80 per share up from $10.90 - $11.20 to reflect continued business outperformance and approval of IBS-D indication for Xifaxan
  • Increasing Adjusted Cash Flow from Operations to greater than $3.2 billion, up from greater than $3.1 billion
  • Expect Same Store Sales Organic Growth of >10% for second half of 2015

Third Quarter 2015 Guidance

  • Total Revenue $2.6 - $2.8 billion
  • Cash EPS $2.60 - $2.70 per share

Fourth Quarter 2015 Guidance

  • Total Revenue $3.2 - $3.4 billion
  • Cash EPS $3.98 - $4.18 per share

      Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announces second quarter financial results for 2015.

      "We once again exceeded our guidance and delivered our fourth consecutive quarter of greater than 15% organic growth," stated J. Michael Pearson, chairman and chief executive officer.  "Our strong second quarter results were driven by outperformance in our U.S. businesses, strong results in certain emerging markets and outstanding starts to both the Salix and Dendreon acquisitions.  In addition, we have signed eight new transactions so far this year and have realized several significant R&D milestones, including the approval of Xifaxan for IBS-D and the NDA submissions for Vesneo and Relistor Oral. As a result, we feel confident in raising our guidance for the remainder of 2015."

      Conference Call and Webcast Information

      The Company will host a conference call and a live Internet webcast along with a slide presentation today at 8:00 a.m. ET (5:00 a.m. PT), July 23, 2015 to discuss its second quarter financial results for 2015. The dial-in number to participate on this call is (877) 876-8393 confirmation code 73333543. International callers should dial (973) 200-3961, confirmation code 73333543. A replay will be available approximately two hours following the conclusion of the conference call through July 30, 2015 and can be accessed by dialing (855) 859-2056, or (404) 537-3406, confirmation code 73333543. The live webcast of the conference call may be accessed through the investor relations section of the Company's corporate website at www.valeant.com.

      About Valeant

      Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com.

      Forward-looking Statements

      This press release may contain forward-looking statements, including, but not limited to, statements regarding our expected future performance, including guidance with respect to revenue, Cash EPS, adjusted cash flow from operations, and organic growth.  Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual or quarterly report and detailed from time to time in Valeant's other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof.  Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.

      Non-GAAP Information

      To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up, amortization of alliance product assets & property, plant and equipment step up, stock-based compensation step-up, contingent consideration fair value adjustments, restructuring, integration, acquisition-related and other costs, In-process research and development, impairments and other charges, ("IPR&D"), legal settlements outside the ordinary course of business, the impact of currency fluctuations, amortization including intangible asset impairments and other non-cash charges, amortization and write-down of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, (gain) loss on assets sold/held for sale/impairment, net, (gain) loss on investments, net, and adjusts tax expense to cash taxes. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a meaningful, consistent comparison of the company's core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP. 

      To read full press release, please click here.

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