Valeant Posts Q1 Loss; To Change Its Name To Bausch Health Companies

(RTTNews) - Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) reported that its net loss for the first-quarter ended March 31, 2018 was $2.693 billion, as compared to net income of $628 million for the same period in 2017. The decrease in net result was primarily attributed to a decrease in the benefit from income taxes and the goodwill impairment charges recorded in the first quarter of 2018. Net income in the first quarter of 2017 included an income tax benefit of $908 million from a non-cash internal restructuring in that quarter. Loss per share was $7.68, as compared to $1.79 for the first quarter of 2017.

Separately, Valeant Pharmaceuticals International said Tuesday that it will change its name to Bausch Health Companies Inc., effective in July 2018. As part of the name change, the Company will roll out a new corporate brand identity in July 2018, which will include new imagery and web site, and will trade under a new symbol, BHC.

Valeant's adjusted net income for the first quarter of 2018 was $312 million, as compared to $273 million for the first quarter of 2017, an increase of 14%.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share. Analysts' estimates typically exclude special items. Total reported revenues were $1.995 billion for the first quarter of 2018, as compared to $2.109 billion in the first quarter of 2017, a decrease of $114 million, or 5%. Wall Street expected revenues of $1.95 billion. Excluding the impact of the 2017 divestitures and discontinuations of $214 million and the favorable impact of foreign exchange of $66 million, revenue grew organically by 2% compared to the first quarter of 2017, primarily driven by growth in the Salix business and the Bausch + Lomb/International segment. Organic revenue growth was partially offset by declines in the Ortho Dermatologics business and lower volumes in the U.S. Diversified Products segment, attributed to the previously reported loss of exclusivity for a basket of products.

Valeant has raised guidance for the full year of 2018 and has not changed anticipated dates for products losing exclusivity (LOE) later this year.

The company raised its full year revenues guidance to a range of $8.15 billion - $8.35 billion from the prior outlook of $8.10 billion - $8.30 billion. Analysts expect annual revenues of $8.23 billion. It also raised full year Adjusted EBITDA to a range of $3.15 billion - $3.30 billion from the previous outlook of $3.05 billion - $3.20 billion.

Valeant Pharmaceuticals International said that it will change its name to Bausch Health Companies Inc., effective in July 2018. As part of the name change, the Company will roll out a new corporate brand identity in July 2018, which will include new imagery and web site, and will trade under a new symbol, BHC. Until that time, the Company will continue to trade on the New York Stock Exchange and Toronto Stock Exchange under its present symbol, VRX.

Because the Company's businesses and subsidiaries have strong brand equity, all entities that have separate established brands will continue to operate under the corporate umbrella using their existing names.

Notice of the name change has been submitted to both the New York Stock Exchange and the Toronto Stock Exchange, and the effectiveness of the name change is subject to the satisfaction of customary conditions of such exchanges.