) fourth quarter 2012 earnings of $1.21 per share
(excluding special items but including stock-based compensation
expense) were short of the Zacks Consensus Estimate of $1.25 but
were up from the year-ago earnings of 90 cents per share.
Revenues for the quarter were $986 million, up 43% from the
year-ago period. The year-over-year improvement in revenues was
primarily attributable to higher product sales. Revenues
surpassed the Zacks Consensus Estimate of $959 million.
For 2012, revenues came in at $3.55 billion, up 44% year over
year and surpassed the Zacks Consensus Estimate of $3.51 billion.
Product sales came in at $3.31 billion, an increase of 47% year
over year. Product sales were negatively impacted by generic
competition ($161 million) and foreign currency movements (over
2012 earnings of $4.42 per share (excluding special items but
including stock-based compensation expense) were short of the
Zacks Consensus Estimate of $4.47 but were up 61.9% year over
Product sales at Valeant Pharma amounted to $947.0 million
during the fourth quarter of 2012, up 45% year over year. Strong
sales in the US Dermatology and the Emerging Markets segments
contributed to the increase.
Organic growth (same store sales) was approximately 7%. On a
pro forma basis, (including the impact of acquisitions and
foreign exchange) revenues grew 9% from the year-ago quarter.
Research & development (R&D) expenses climbed 20.2% to
Selling, general & administrative (SG&A) expenses for
the fourth quarter of 2012 increased 37.8% to $204.7 million due
to a $2.7 million step-up in stock-based compensation expenses
related to the acquisitions and $3.7 million loss on the disposal
of fixed assets. Excluding these items, SG&A was
approximately 20% of revenue.
Valeant Pharma reaffirmed its guidance for 2013 provided on
Jan 4, 2013. Valeant continues to expect revenues between $4.4
billion and $4.8 billion in 2013, up 30% from 2012, excluding
potential acquisitions other than the Natur Produkt acquisition
(which was completed in Feb 2013). Earnings per share are
projected around $5.45 - $5.75. Valeant expects generics to hit
revenues by about $100 million.
The Zacks Consensus Estimate for 2013 hints at earnings of
$4.47 per share on revenues of $4.6 billion.
Solodyn (minocycline) revenues are expected in the range of
$250 million to $275 million in 2013. Valeant plans to divest
several assets generating approximately $40 million to $50
million in annual revenues.
Valeant expects to obtain synergies of more than $275 million
in 2013. However, the company does not expect these synergies to
materialize before late 2013 as most of it relates to the
litigation matters and the winding down of a number of R&D
AVANIR PHARM (AVNR): Free Stock Analysis
FURIEX PHARMACT (FURX): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
VALEANT PHARMA (VRX): Free Stock Analysis
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Valeant Pharmaceuticals currently carries a Zacks Rank #3 (Hold).
Salix Pharmaceuticals Ltd
Avanir Pharmaceuticals Inc
Furiex Pharmaceuticals Inc
) look better positioned with a Zacks Rank #2 (Buy).