Valeant reports loss amid restructuring

Valeant Pharmaceuticals has reported increased losses amid a restructuring programme to improve the company’s cost efficiency.

The company said it had sustained an operating loss of $30.85 million (16.1 million pounds), compared to a $21.2 million profit during the same period a year ago. Valeant said this was due to a stock-based compensation programme as well as the continuing restructure of the company, which will involve the sale of manufacturing plants.

Despite the restructuring charges, Valeant said revenues had increased by 12 per cent during the quarter, while product sales had increased 15.8 per cent – with European, Middle East and Asian sales rising by nine per cent, driven by increased sales of Kinerase, Mestinon and Bisocard.

Timothy C Tyson, president and chief executive officer, remarked: “We’re very pleased with the results for the second quarter of 2006, which reflect an improvement in product sales and a continued control of expenses.”

“Sales were higher due to acquired products and an overall growth in promoted brands. All of our regions did an excellent job in holding the line on expenses in the quarter,” he added.

Mr Tyson said that continuing growth in sales gave Valeant added confidence in its ability to achieve its targets for the year, helped by the restructuring which is expected to give the company “significant benefits” in reducing its costs and improving its bottom line.

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