Valeant plunges: capitalization down 11% following Q4 2017 results

Canada-based Valeant has had the worst start today. The group led by CEO Joe Papa announced today, before trading started, its Q4 2017 results, which were below analysts’ and investors’ expectations. The company’s shares soon reacted with a 11% decline as Wall Street opened.  Sales in Q4 were $2.16bn instead of the expected $2.18bn, adjusted EBITDA was $875m versus the predicted $879m. However, what raised most disappointment among investors is that Valeant expects $8.1bn to $8.3bn revenues in 2018, instead of the expected $8.4bn. Investors have also assessed the results from Bausch & Lomb arm, which delivered sales of  $1,226bn, that is a 3% decrease vs Q4 2016, but a 4% rise excluding divestitures, driven primarily by the International Rx, Global Consumer and Global Vision Care businesses. The same Salix division, which was ready to be sold in 2017, yielded a modest +3%.

(Source: Valeant)