Valeant reports first-quarter results

Valeant Pharmaceuticals has published its financial results for the first quarter of the 2008 fiscal year.

The firm announced revenues of $194.7 million (100 million pounds), a five per cent decrease compared to the same period last year.

Product sales rose by eight per cent during the quarter to $181.9 million, while the company’s gross margin for the period fell by two per cent to 70 per cent as a result of increased inventory reserves.

Research and development costs for the quarter rose from $21 million last year to $29.4 million this year.

During the first quarter, the company recorded a net loss from continuing operations of $0.6 million, equal to $0.01 per diluted share. In the first quarter of 2007 Valeant recorded a net income of $13.5 million.

J Michael Pearson, chairman and chief executive officer of the company, said: “The financial results from this quarter continue to highlight the need for decisive change at Valeant.

“We have initiated steps to address our cost base and return this company to growth and sustained profitability.”

He added that while the company still faces many challenges, it is now in the execution phase of a transformation.

In March 2008, Valeant announced the divestment of some of its international business as part of a plan to further simplify its operations.