Valeant Pharmaceuticals International (VRX) said on Tuesday it would reorganize, and stood by its full-year forecast, as it attempts to restore investor confidence after facing a storm of criticism over its business practices.
The Canadian drugmaker has faced intense political and investor scrutiny in the past year for its steep drug price increases and unorthodox use of a specialty pharmacy.
Valeant, which has about $30.77 billion in debt, also had to appease creditors after missing deadlines for filing financial reports, triggering default notices.
“We continue to make progress towards stabilizing the organization,” Chief Executive Joseph Papa, who took over from Michael Pearson in May, said in a statement.
“We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients’ lives, and will involve reorganizing our company and reporting segments.”
The Laval, Quebec-based company said it still expected full-year revenue of $9.9 billion-$10.1 billion and adjusted earnings of $6.60-$7.00 per share.
The company, whose U.S. shares were up 6.9 percent in premarket trading, said second-quarter revenue fell to $2.42 billion from $2.73 billion a year earlier.
Analysts on average had expected revenue of $2.46 billion, according to Thomson Reuters I/B/E/S.
The net loss attributable to the company increased to $302.3 million, or 88 cents per share, in the second quarter ended June 30 from $53 million, or 15 cents per share, a year earlier.
Excluding items, Valeant earned $1.40 per share, missing analysts’ average estimate of $1.48.
The company, which has been selling non-core assets, said it had divested the North American rights to the hereditary angioedema drug, Ruconest, to Netherlands-based Pharming Group NV in deal worth up to $165 million.
Valeant’s shares, which closed at $22.45 on Monday, have lost more than 90 percent of their value since hitting a record high of $263.81 in August.
This story has been corrected to reflect that Valeant stock’s record high was $263.81, not $253.57. It also corrects its percentage decline to “more than 90 percent” from “about 90 percent.”