Valeant cuts 2016 revenue forecast

TORONTO: Valeant Pharmaceuticals International Inc cut its revenue forecast for the year by about 12 percent, or $1.5 billion, citing slower growth in its U.S. dermatology, gastrointestinal and women's health businesses. The Canadian drugmaker, which is under scrutiny for its business and accounting practices, said on Tuesday total 2016 revenue is expected to be $11.0 billion$11.2 billion, compared with its previous estimate of $12.5 billion-$12.7 billion. The company originally provided its 2016 forecast in December, but withdrew it on Feb. 29 when Chief Executive Michael Pearson returned from two months medical leave.

Valeant said in a regulatory filing that if it did not file its annual report by Tuesday it would be in breach of a reporting covenant and holders of at least 25 percent of any series of notes may deliver a notice of default. The company, whose U.S-listed shares were down about 8 percent in premarket trading, said preliminary fourth-quarter revenue was $2.8 billion, mainly hurt by weaker-than-expected sales in its gastrointestinal business. Valeant reported adjusted earnings of $2.50 per share, compared with the average analyst estimate of $2.61. The company said it expected adjusted earnings of $9.50$10.50 per share for 2016, compared with its previous estimate of $13.25$13.75 per share. Analysts on average were expecting earnings of $13.24 per share on revenue of $12.41 billion.