Valeant Pharmaceuticals' ( VRX ) 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
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 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 Mylan's ( MYL ) generic version
of Valeant Pharma's Zovirax ointment in Apr 2013.
The Zacks Consensus Estimate for 2013 hints at earnings of $5.65
per share on revenues of $4.55 billion.
Valeant 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. The company 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
now, Onyx Pharmaceuticals, Inc. ( ONXX ) and
WuXi PharmaTech (Cayman) Inc. ( WX ) look better
positioned with a Zacks Rank #1 (Strong Buy).
We are reissuing this article to correct a mistake. The
original article, issued Friday, May 3, 2013, should no longer be
relied upon .MYLAN INC (MYL): Free Stock Analysis ReportONYX PHARMA INC (ONXX): Free Stock Analysis
ReportVALEANT PHARMA (VRX): Free Stock Analysis
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