April 4 Valeant Pharmaceuticals International
Inc, Canada's biggest listed drugmaker, said it expects
Mylan Inc's launch of a generic version of Valeant's
genital herpes drug to reduce its cash earnings-per-share for
the year by 30 to 40 cents.
The company said it would launch its own generic of the
ointment, Zovirax, on Thursday.
Mylan, a generic drugmaker, said on Wednesday it received
final approval for the first generic version of Zovirax from the
U.S. Food and Drug Administration.
Valeant had said in January it sees 2013 adjusted profit,
which it calls cash earnings per share, of between $5.45 and
The company, caught in a bidding war with German drugmaker
Merz Pharma Group for cosmetics products maker Obagi Medical
Products Inc, has been bulking up its skin care
portfolio in the United States.
"While the timing of a generic approval was always
uncertain, this was not unforeseen and we were prepared for its
eventuality," said Chief Executive Michael Pearson.
However, the company did not factor in the generic launch in
its original budget expectations.
The company said there are other actions, such as several
product acquisitions, repricing of its term loan debt that could
mitigate the impact of Zovirax losing patent protection.