Valeant plunges as financials miss expectations

Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) saw its plummet more than 37% to $58.00 after in its much awaited preliminary financial results, that came in below analysts’ expectations, and slashed forward guidance.

While fourth-quarter 2015 revenue of $2.79 billion topped analyst projections for $2.76 billion, Valeant posted a loss of $336.4 million, or $0.98 per share (unaudited on a generally-accepted accounting principles [GAAP] basis). Excluding one-time items, earnings per share were $2.50, far short of the EPS of $2.64 that Wall Street expected, according to a survey by Zacks Investment Research.

Preliminary unaudited fourth quarter results were impacted by softer-than-expected sales of the gastrointestinal business, as compared to previous guidance issued in December, driven by reductions in the wholesale and retail channel in reaction to Valeant's announcement of an agreement with Walgreens, according to Valeant.