"Next year, we'll be about a $13 billion company".
After losing 73 per cent over the past few months, Valeant's shares increased almost 15 percent in morning trading on the Toronto Stock Exchange. That's well short of the $11.11 that Wall Street had projected, according to a survey of analysts by FactSet.
Valeant said its revenue for the quarterly would be between $2.7 billion and $2.8 billion, which is lower than guidance earlier of between $3.25 billion and $3.45 billion. (VRX.TO) is cutting its revenue and profit forecasts.
For 2016, Valeant said it expects adjusted earnings will come in between $13.25 to $13.75 a share on revenue of $ 12.5 billion to $12.7 billion. That also misses average analyst expectations for $14.20 per share.
Valeant has said that it will not do acquisitions in 2016 and instead focus all of its cash on paying down its $34 billion debt pile.
Pearson had previously said that Valeant would take a short-term hit, including by focusing on debt reduction, in order to ultimately secure long-term gains.
By-pass traditional pharmaceutical distribution systems: this will allow the company to cut cost by eliminating middlemen and by delivering drugs directly to Walgreens.
The company, under scrutiny for its drug pricing practices, will discount its brand-name dermatology and ophthalmology prescription products by 10 percent for distribution through Walgreens' more than 8,000 USA pharmacies, according to a statement on Tuesday.
That "indicates to us that the increase in expected volume from the Walgreens agreement is not enough to offset the loss of more profitable products from the specialty pharmacy business at higher prices, at least in the near term", he wrote in a report. Online investment research company Citron Research has called Valeant the "pharmaceutical Enron".
Valeant Pharmaceuticals Intl has a consensus rating of Buy and a consensus price target of $163.62. "It's our obligation to prove what they said is false. We will have double-digit organic growth, not just next year, but the year after that and the year after", Pearson predicted.
Approximately six weeks ago, Valeant's board formed an ad hoc committee to investigate the recent allegations made against Philidor, including claims that Valeant management was involved in the alleged wrongdoing at Philidor.
Company officials refused to answer any analyst questions on the investigations or the company's much-criticized drug price hikes.
Valeant Pharmaceuticals is facing more pressure from a high ranking USA politician who says the company has obstructed a congressional investigation into drug pricing activities by failing to disclose information as requested.
Pearson sought to project a more upbeat future on Wednesday.
Usually, it is not good news for shareholders when a company decides to cut product's price, but not in this case.
By: Jamie Simon.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
For The #FacebookTeam