Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has released the financial results for its 3Q2016, recording total revenues of $2.48 billion. The company also updated its guidance for the FY2016, after suffering a decline of 11% in revenues, on a year-over-year basis. VRX claimed that the decline was mainly due to a decline in product sales, as well as negative foreign exchange movements and discontinued operations.
Joseph C. Papa, the CEO of Valeant, stated that the 3Q2016 was about developing the new Valeant. He pointed out that the company had hired two new executives and centralized some parts of its business, in this regard. The CEO further stated that the company now plans to present its financial statements, under three operating segments, which would provide further transparency to shareholders.
One of the red flags highlighted in the 3Q2016 report was the fact that VRX had a net loss of $1.22 billion, for the period. In comparison, the company had a net profit of $49.5 million, during the previous year. Valeant stated that the net loss was mainly attributable to the goodwill impairment, it suffered during the 3Q2016, worth $1.05 billion. The impairment was a result of an analysis conducted in connection with the change in reporting units. However, VRX was still able to report an adjusted net income of $543 million, which was still below the figures from 3Q2015, which stood at $845 million.
Earlier last week, Valeant released a statement commenting on a press report, issued with regard to its gastroenterology business. The company stated that it was currently holding discussions with third parties, so as to evaluate divestitures, which also includes Salix. VRX further noted that the discussions may or may not lead to a definitive agreement. As such, the company does not plan to provide updates on market speculation, unless it is deemed necessary.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) closed at a share price of $14.98, at the end of the November 8 trading session, after having lost 21.69% of its share value, on a trade volume of 96.47 million.