Valeant Pharmaceuticals signalled Tuesday that it awaits its financial performance to continue deteriorating through next year succeeding a $1.22-billion US loss in the third quarter and expectations of more red ink to appear.
The Laval, Que.-based pharmaceutical giant saw its stock tumble to a six-year low in morning employment as it also cut its forecast for this year, saying it expects a weaker fourth rt.
Joseph , who was brought in as CEO and chairman earlier this year to make over Valeant around, recited a litany of problems confronting what was on a former occasion the most valuable com ny on the Toronto Stock Exchange.
“We continue to prerequisite to address legacy issues, including negative press coverage, case and talent retention and severance,” told investors on a conference convoke.
“In summary, we face some challenges, but we are taking specific actions that thinks fitting put us on the right track.”
He said some of the measures Valeant is taking involve further investments in research and development as well as hiring new talent.
“While it’s certain we still have more work to do, I believe we have the right link up in place and are on the right th forward.”
As expected, Valeant lowered its 2016 guesses. Revenues are forecast to range between $9.55 billion to $9.65 billion, down from $9.9 billion to $10.1 billion. Alt earnings per share are now estimated at between $5.30 and $5.50 per share, down from $6.60 to $7 per allot.
In morning trading on the Toronto and New York stock markets, Valeant appropriations plummeted to levels not seen in more than six years. That upped after it reported a $1.22-billion US loss in the three-month period the limited Sept. 30, which was mainly tied to a $1.05-billion US goodwill diminution charge for Salix, which it acquired last year.
Its shares vanished around 20 per cent of their value in Toronto at $20.28 in morning deal.
Valeant, which reports in U.S. currency, said its net loss was equal to $3.49 per interest, which contrasted with a profit of $49.5 million or 14 cents per ration in the third quarter of 2015.
Revenue fell 11 per cent to $2.48 billion, first and foremost because of lower product sales as well as currency exchange have a claim ti and divestitures.
After adjustments that exclude the writedown of Salix and other points, Valeant earned $543 million or $1.55 per share, down from $844.7 million or $2.41 per equity.
Valeant said it faced unexpected challenges in the third quarter, embracing weakness in its dermatology business. Any improvements in its core business are expected to be overwhelmed by the expiry of tents in its neurology dividing line and increased competition for some of its generic drugs, the com ny said.