Valeant Pharmaceuticals International Inc (VRX), which is under fire for massive price hikes of its two heart drugs, reported a better-than-expected quarterly profit, boosted mainly by strong performance in its U.S. dermatology business.
Net income attributable to the company fell to $49.5 million, or 14 cents a share, for the third quarter ended Sept. 30, from $275.4 million, or 81c a share, a year earlier. Revenue rose an organic 13%, while new acquisition Salix Pharmaceuticals contributed another $461 million in the quarter, bolstering the group’s top line by over 16%.
Revenue rose to $2.79 billion from $2.06 billion a year earlier, topping analysts’ expectation of $2.78 billion. Sales from U.S. dermatology business rose 53% to $465.5 million.
As a result, the Canadian drugmaker raised its full-year guidance to around $11.77 a share, from $11.65 previously, as it upped its revenue forecast to around $11.1 billion from an earlier $10.9 billion.
Valeant said last week it had been subpoenaed by U.S. prosecutors, seeking details on its drug pricing and distribution practices. However, the company said volume growth of 8.2% contributed to overall revenue than price factors (4.4%).
