Valeant Pharmaceuticals (Valeant Pharmaceuticals Stock Quote, Chart, News: TSX:VRX) this morning released preliminary unaudited financial information for Q4 2015, Q1, 2016 and for fiscal 2016 that guided lower across the board.
The news sent the stock down more than 10 per cent in pre-market trading on the NYSE.
The company said impacted by lower than expected sales of the gastrointestinal business, it fourth quarter 2015 revenue would be $2.8 billion.
In Q1, 2016 Valeant said its revenue would come in at $2.3-$2.4 billion instead of previous guidance of $2.8-$3.1 billion.
And for fiscal 2016, the company said revenue would be be $11.0-$11.2 billion, not the $12.5-$12.7 billion it had previously guided.
“The challenges of the past few months are not yet behind us and our goal for 2016 is to better balance our priorities across all of our constituencies – physicians, patients, employees, payors, debt holders and shareholders,” said CEO J. Michael Pearson”I want to again thank all our dedicated employees, as well as the entire management team, for their diligence throughout this difficult time to ensure that the business remains solid.”
Pearson elaborated on the plan going forward.
“In discussion with the Board, we have assumed lower growth in our U.S. dermatology, gastrointestinal, and woman’s health portfolios, as well as certain geographies like Western Europe, while keeping our expenses largely unchanged. We plan to work hard to improve these metrics by delivering higher revenues and reducing our costs and, if successful, we hope to beat this guidance in the quarters to come. In the meantime, we are comfortable with our current liquidity position and cash flow generation for the rest of the year, and remain well positioned to meet our obligations.”