OTTAWA: Canada’s Valeant Pharmaceuticals International (TSX: VRX) has released fourth-quarter and full-year 2016 results, showing that revenue fell 12.9% to $2.40 billion for the quarter, but exceeded the averageanalysts’ expectation of $2.33 billion. Net loss for the quarter was $515 million as compared to a net loss of $385 million in the fourth quarter of 2015, an increase of 33.8%. In addition to the increase in operating loss of $17 million, the increase in Net loss was primarily driven by increases in interest expense of $34 million, foreign exchange loss and other of $43 million, and provisions for income taxes of $33 million. Excluding items, Valeant earned $1.26 per share, beating analysts’ average estimate of $1.19, according to Thomson Reuters. The company’s shares were down nearly 10% at $15.05 by mid-morning trading.
Valeant, which is facing severe scrutiny over its drug pricing policies, said total revenues for the full year 2016 were $9,674 million as compared to $10,447 million for 2015, reflecting a decrease of 7%. Full year net loss was $2.41 billion compared to $292 million in 2015, an increase of $2.12 billion. The increase is primarily attributable to the increase in loss before income taxes of $2.28 billion. The 2016 net loss includes a recovery of income taxes of $27 million while the 2015 net loss includes a provision for income taxes of $133 million. The company said it expected 2017 revenue in the $8.90 billion-$9.10 billion range, in line with analysts’ expectations for revenue of $8.96 billion.
