Valeant lowers 2016 forecast as drugmaker's woes weigh on 2016

[SAN FRANCISCO] Valeant Pharmaceuticals International Inc gave a new sales and profit forecast for 2016 that's lower than what the drugmaker had predicted in December, then pulled last month after the return from medical leave of chief executive officer Michael Pearson.

Sales for the year will be US$11 billion to $US11.2 billion, compared with previous guidance of US$12.5 billion to US$12.7 billion, Valeant said Tuesday in a statement. Adjusted earnings per share will be US$9.50 to US$10.50, compared with the prior forecast of US$13.25 to US$13.75.

Fourth-quarter sales were US$2.8 billion. Profit, excluding certain items, was US$2.50 a share. Because the company pulled guidance and has said it will restate several quarters of earnings related to Philidor, the results may not compare with analyst estimates or prior quarters.

Valeant, once a high-flying stock that was a favorite among hedge funds, has lost about three-quarters of its market value since peaking on Aug 5, as the scrutiny on its business practices intensified.

Mr Pearson, who took a long medical leave in late December for severe pneumonia, announced his return on Feb 28.

At the same time, Valeant pulled its financial guidance and delayed reporting fourth-quarter results, saying it would wait until a board committee had finished an investigation of mail-order pharmacy, Philidor Rx Services LLC.

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