Valeant Pharmaceuticals Intl Inc VRX shares were surging nearly 14 percent after the open Tuesday after the company reported first-quarter results and announced a name change to Bausch Health Companies Inc. that takes effect in July.
Canada-based Valeant said it earned 89 cents per share in the first quarter on revenue of $1.995 billion, which topped expectations of 60 cents per share and $1.95 billion, respectively. By segment, Bausch + Lomb/international revenue fell from $1.134 billion a year ago to $1.103 billion. Brandex Rx sales fell from $629 million to $593 million and U.S. Diversified Products revenue fell from $346 million to $299 million.
Why It's Important
Despite a drop in revenue on a year-over-year basis, Valeant said it delivered organic revenue growth that exceeded expectations for the first time since 2015. The better-than-expected organic growth prompted the company to lift its full-year revenue guidance from $8.1-$8.3 billion to a range of $8.15-$8.35 billion. Valeant also lifted its adjusted EBITDA for the full year from $3.05-$3.2 billion to a new range of $3.15-$3.3 billion.
Valeant said in its earnings report that new product launches are ongoing for two of its "Significant Seven" products:
- Vyzulta, a treatment option for glaucoma.
- Lumify, the only over-the-counter eye drop with low-dose brimonidine for the treatment of eye redness.
Valeant's name change to Bausch Health Care Companies Inc. "represents the breadth of the company today and reflects the innovative legacy of the Bausch name," the company said.
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