Valeant reported earnings that were ahead of expectations, as the drugmaker tries to revive its fortunes after an accounting scandal saw investors wipe more than $80bn from its market value.
The company posted adjusted earnings before interest tax depreciation and amortisation of $951m for the second quarter, 10 per cent higher than the past quarter but 12.5 per cent lower than the same period of last year.
Although Valeant does not report adjusted earnings per share, a slide deck prepared by the company suggested the number was $1.03, which was ahead of the 94 cents that analysts were typically expecting.
Revenues of $2.23bn were in line with analyst forecasts but 8 per cent lower than last year, which the company blamed on losing patents on some of its top products, as well as lower sales at the skincare unit that was at the centre of the accounting scandal.
Valeant cut its revenue forecasts for the full year to $8.7bn to $8.9bn from a previous range of $8.9bn to $9.1bn, citing the impact of assets it is selling to help pay off its $28bn of debts.
However, it maintained its full year estimate for ebitda between $3.6bn and $3.75bn.
“The investments we are making in our core business are delivering results,” said Joseph Papa, chief executive officer. “And we are continuing to reduce debt and resolve legacy issues.”
Shares in the company initially increased by around 7 per cent in premarket trading and were up 5 per cent at pixel time.