Valeant reports ‘poor’ second-quarter financials

Valeant Pharmaceuticals has announced its financial results for the second quarter of the 2008 fiscal year.

The company generated revenues of $206.8 million (109 million pounds) during the quarter, down from $220.5 million in the comparable period last year.

Sales in Europe, Middle East and Africa rose from $77.1 million in 2008 to $91.6 million, with the company attributing this rise mainly to favourable currency fluctuations.

Gross margin on product sales – including amortisation costs – fell from 64 per cent in the second quarter last year to 56 per cent this year.

During the quarter the company experienced a loss from continuing operations of $73.5 million, equal to $0.82 per diluted share. This compares to a net income of $21.9 million or $0.23 per diluted share in the same period last year.

J Michael Pearson, chairman and chief executive officer of Valeant, said: “Our financial results from this quarter, in aggregate, are poor.

“However, they are largely a reflection of many of the key components of the turnaround programme”.

These included a planned reduction in the wholesaler inventory in the US, Canada and Mexico, in addition to a changed commercial focus in its product portfolio, restructuring costs and the resolution of litigation.

Earlier this month, Valeant Pharmaceuticals signed an agreement with Meda to collaborate on a number of existing and future products.