Valeant Cuts Revenue Outlook

(RTTNews) - Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) Tuesday lowered its revenue outlook for the full year. However, the Canada-based drugmaker also said it will cut more debt.

The company now expects full-year revenues of $8.70 to $8.90 billion from $8.90 to $9.10 billion.

The company maintained its full-year adjusted EBITDA guidance range of $3.60 to $3.75 billion despite the impact of divestitures that have closed in 2017.

The company also said it expects to exceed commitment to pay down $5 billion in debt from divestiture proceeds and free cash flow before February 2018, which will leave the company with no debt maturities until 2020.

Valeant's debt has surged in recent years because of series of acquisitions under former CEO Mike Pearson. Under CEO Joseph Papa, the company has been striving hard to reduce its overall debt load. The company completed the sale of its Dendreon unit and used proceeds to pay down $811 million in loans. It also plans to sell iNova and Obagi for $930 million and $190 million, respectively.