Positive signs from Valeant, market rewards it
Valeant seems to have partially won back trust from analysts and investors. This was proved by its shares leaping by 10% yesterday when Wall Street opened – definitely a considerable step forward for the company, whose capitalization plunged from $90bn to $5.4bn in 18 months. The financial community positively reacted to Valeant’s Q2 results, which show a company growing again, with a plan to settle the huge debt ($29bn) built up by the previous management. Sales rose from 14.4% to $2.23bn and EBITDA was $951m, a 10% improvement over Q1 2017, yet 12.5% below Q2 2016. EPS was $1.06, exceeding analysts’ expectations ($0.94). Outstandingly, net loss decreased to $38m, far below the $302m reported in 2016. The plan to pay off a minimum of $5bn debt before February remains on track, especially thanks to the recent divestitures of iNova Pharmaceuticals e Obagi Medical, the group CEO said. In a conference call with analysts, Papa did not mention any plan to partially sell Bausch and Lomb, which confirmed its position as Valeant’s key asset, delivering 56% of the group’s sales and a 6% growth rate – Valeant was rumored to be about to sell the whole asset or a part of it some months ago.