* 3rd-qtr net loss $2.92/shr vs profit 2 cents/shr year ago
* CFO: Small, cash-based acquisitions likely in near term
(Adds company comments on outlook, M&A, analyst comment)
By Rod Nickel and Sayantani Ghosh
Oct 31 Valeant Pharmaceuticals International Inc
, Canada's biggest publicly traded drugmaker,
posted a quarterly net loss on Thursday after restructuring and
impairment charges, and cut its full-year revenue outlook.
Valeant shares fell 4.6 percent to $104.02 in U.S. trading,
and 5 percent to C$108.73 in Toronto action, hitting one-month
lows. U.S.-listed shares are up about 74 percent in 2013.
The company, which bought contact lens maker Bausch & Lomb
in August for $8.7 billion, said it expects full-year revenue of
$5.7 billion to $5.9 billion, down from its earlier forecast of
$5.8 billion to $6.2 billion.
The lower forecast reflected the early launch in August of
generic competition for its dermatology product Retin-A Micro,
unfavorable foreign exchange fluctuations and slower sales of
Bausch & Lomb surgical equipment, Chief Financial Officer Howard
Valeant also tightened its full-year adjusted profit range
to between $6.11-$6.16 per share from a prior estimate of
$6.00-$6.20 per share.
The lowered earnings outlook was not as negative as it
appeared, since it would have increased if not for the early
generic competition for Retin-A and currency factors, J.P.
Morgan analyst Chris Schott said in a note to clients.
Valeant has aggressively pursued acquisitions since its 2010
takeover by Biovail Corp, which assumed the Valeant name. It has
favored segments where patients often pay out of pocket, like
opthalmology and dermatology, cutting its exposure to
The company said it expects to realize synergies of more
than $850 million from the Bausch & Lomb acquisition.
CFO Schiller said he sees small, cash-based acquisitions
likely in the near term, and Chief Executive Michael Pearson
said the company was also interested in a "merger of equals"
involving a stock swap.
Pearson said such a merger will happen, but was unsure of
the timing. "Clearly, it's something that we're interested in,
(but) we are not going to do it at a premium."
A round of cost-cutting this year at several of the largest
pharmaceutical companies has not changed the price of potential
acquisitions, but opportunities have multiplied as Valeant
becomes better known, Pearson said.
The company posted a third-quarter net loss of $973.2
million, or $2.92 per share, compared with a profit of $7.6
million, or 2 cents per share, a year earlier.
The loss includes a restructuring charge of $305 million
primarily related to the acquisition of Bausch & Lomb and an
impairment charge of $645 million.
The loss also includes a $142.5 million payment to Anacor
Pharmaceuticals Inc as part of settling a breach of
Third-quarter cash earnings, or profit adjusted for one-time
items, was $486 million, or $1.43 per share.
Total revenue jumped 74 percent to $1.51 billion.
Analysts expected cash earnings of $1.42 on revenue of $1.67
billion, according to Thomson Reuters I/B/E/S.
Also on Thursday, Israel's Teva Pharmaceutical Industries
Ltd , the world's largest generic drugmaker,
reported flat earnings.
(Reporting by Sayantani Ghosh in Bangalore and Rod Nickel in
Winnipeg; Editing by Robin Paxton and Jeffrey Benkoe)