Valeant boosts full-year earnings guidance as Q2 sales jump 34 percent

Valeant Pharmaceuticals said Wednesday that it expects earnings per share of between $6.00 and $6.20 for 2013, up from an earlier estimate of $5.55 to $5.85 per share, after reporting an increase in second-quarter sales. The company predicts revenue for the full year of between $5.8 billion and $6.2 billion.

In the three-month period, Valeant reported a 34-percent increase in sales to $1.1 billion, in line with analyst estimates, while net income reached $10.9 million, versus a loss in the same quarter of last year of $21.6 million. "The continued outperformance of our businesses, which delivered strong financial results and organic growth despite the genericisation of our largest product in April, demonstrates the value of a diversified portfolio," remarked CEO J. Michael Pearson.

"We are particularly pleased with the performance of our emerging markets segment, which delivered organic growth of 14 percent," Pearson added. Sales in emerging markets during the quarter jumped 26 percent to $304 million, driven by "strong growth" in Poland, Russia, Brazil, Mexico, South East Asia and South Africa. Meanwhile, revenue from developed markets surged 37 percent to $792 million, boosted by newly-acquired products from the recent purchases of Obagi Medical Products and Medicis Pharmaceutical.

Pearson noted that during the quarter, Valeant was "also able to close the acquisition of Bausch & Lomb...and complete the integration planning for the transaction." As previously indicated, the company confirmed that it expects to achieve "significantly more" than $800 million in synergies from the $8.7-billion deal.

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