Valeant introduces ‘top talent’ ahead of Q2 report

MONTREAL• Ex-darling Valeant Pharmaceuticals International Inc. is hoping to put its annus horribilis in the rear- view mirror when it reports secondquarter results Tuesday.

The Quebec- based drugmaker was the most valuable company in Canada by market capitalization a year ago, but has since seen nearly 90 per cent of its value evaporate and has changed CEOs as it struggles to rebuild public and investor trust.

New chairman and chief executive Joseph Papa has reduced Valeant’s 2016 earnings guidance after enduring scrutiny from U.S. government investigations, delayed financial results, an earnings restatement and public grillings over alleged price gouging.

Valeant’s latest quarterly results are expected to be modestly better than the first quarter, but dramatically lower compared to 2015.

Revenues are forecast to drop 10 per cent to US$ 2.46 billion, according to analysts polled by Thomson Reuters. Adjusted profits are expected to plummet to US$ 512.44 million or US$ 1.48 per share, from US$897.1 million or US$2.56 per share a year ago.

The company is expected to earn US$ 149.5 million or nine cents per share including one- time items, reversing a US$53-million or US 15 cents- per- share loss a year ago.

Papa announced Monday he has brought in new faces to top management and expanded the roles of some existing senior executives.

Queen’s University graduate Christina Ackermann was named general counsel while communications expert Scott Hirsch was appointed to replace longstanding spokeswoman Laurie Little. Valeant’s communications and investor relations had been criticized by major investor Bill Ackman of Pershing Square Capital, who has since joined the company’s board of directors.

“As we develop our strategic plan to create the new Valeant, we are adding top talent to the leadership team, promoting high- performing leaders from within, and creating new structures and processes to help strengthen operations as we move forward,” Papa said in a news release.

The pharmaceutical company has recently received mixed regulatory news. The U.S. Food and Drug Administration has approved a new drug, another is expected to be approved by the end of the year, but restrictions have been placed on another drug that may limit its commercial potential. And drops for glaucoma weren’t approved due to manufacturing deficiencies at its facility in Tampa, Fla.

However, Valeant announced on Monday a licensing agreement with Norgine B.V. to develop and commercialize a preparation for cleansing of the colon in preparation of colonoscopy.

Valeant gained two per cent to close at $ 29.51 Monday in Toronto.