) first quarter 2013 earnings of $1.27 (excluding special items
but including stock-based compensation expense) were short of the
Zacks Consensus Estimate by a penny but were up from the year-ago
earnings of 1.08 per share.
Revenues for the quarter were $1.07 billion, up 25% from the
year-ago period. The year-over-year improvement in revenues was
primarily attributable to higher product sales. However, revenues
missed the Zacks Consensus Estimate of $1.08 billion.
Product sales at Valeant Pharma amounted to $1.04 billion
during the first quarter of 2013, up 38% year over year. Strong
sales in the US Promoted (previously US Dermatology) and Emerging
Markets segments contributed to the increase.
US Promoted product sales increased 91% to $479 million fueled
by solid growth in key brands such as Acanya, CeraVe, Arestin,
Dysport, Restylane, Perlane and AcneFree. Organic growth
(same-store sales) was approximately 6%. Product sales from the
emerging markets grew 27% year over year.
On a pro forma basis (excluding the impact of foreign
exchange), total revenues grew 25% from the year-ago quarter.
Research & development (R&D) expenses climbed 8.1% to
Selling, general & administrative (SG&A) expenses for
the first quarter of 2013 increased 36.4% to $241.9 million due
to the integration of Medicis operations.
We note that in Dec 2012, Valeant Pharma acquired the entire
outstanding common stock of erstwhile Medicis Pharmaceutical
Corporation for approximately $2.6 billion.
Valeant Pharma updated its guidance for 2013. Valeant Pharma
continues to expect revenues between $4.4 billion and $4.8
billion in 2013, up 30% from 2012, excluding potential
acquisitions apart from the Natur Produkt acquisition (which was
completed in Feb 2013).
Nevertheless, earnings per share on a cash basis are now
projected around $5.55 -$ 5.85, up from the earlier projection of
$5.45 - $5.75. The guidance includes a loss of 35 to 40 cents
from the launch of
) generic version of Valeant Pharma's Zovirax ointment in Apr
The Zacks Consensus Estimate for 2013 hints at earnings of
$5.60 per share on revenues of $4.55 billion.
Valeant Pharma expects to obtain synergies of more than $300
million by the end of 2013 from the Medicis acquisition, up from
the previous estimate of $275 million. Valeant Pharma recently
completed the acquisition of Obagi Medical which is expected to
generate synergies of $50 million by the end of 2013.
Valeant Pharma currently carries a Zacks Rank #3 (Hold). Right
Onyx Pharmaceuticals, Inc.
) look better positioned with a Zacks Rank #1 (Strong Buy).
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