Valeant Pharma Q1 Loss Narrows

(RTTNews) - Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO), which has proposed to buy Allergan, Inc. (AGN), Thursday said first-quarter net loss narrowed from last year, supported by growth in revenues.

Michael Pearson, chairman and CEO, said, ''The U.S. delivered positive organic growth this quarter, despite the negative generic headwinds of losing three of our top ten products in 2013 including our largest product. Our Bausch + Lomb businesses continued to deliver double-digit organic growth...''

Net loss for the quarter was $22.6 million or $0.07 per share, compared with a loss of $27.5 million or $0.09 per share in the previous year.

The latest results included restructuring, integration and other charges of $135 million primarily related to the acquisition of Bausch + Lomb.

Cash earnings per share was $1.76, while it totaled $1.30 last year.

Valeant's total revenues jumped 77 percent to $1.89 billion from $1.07 billion.

The company's developed market revenue increased 82 percent to $1.4 billion, driven by continued growth in promoted dermatology prescription brands, consumer, neurology and other, as well as oral health businesses. The 9 percent organic growth in the Bausch + Lomb businesses also helped revenue growth.

Valeant's Emerging Market revenue jumped 61 percent to $464 million, as a result of continued double-digit growth in legacy Latin America, Southeast Asia, South Africa businesses, along with the addition of the Bausch + Lomb emerging market businesses.

The segment was hurt by the modest organic growth in Central and Eastern Europe due to a market slowdown including the impact of the unrest in the Ukraine on the region.

Same store organic product sales growth for Valeant was 1 percent, while pro forma organic growth was 4 percent.

As Valeant said previously, after the second quarter, the impact of recent generic entrants would be largely behind it and the company expects a significant acceleration of organic growth in the last half of the year.

Valeant last month proposed to buy Allergan, which makes wrinkle treatment drug Botox, for $48.30 in cash and 0.83 Shares of Valeant stock for each Allergan share.

VRX closed at $133.35 on the NYSE on Wednesday.