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Valeant Pharmaceuticals boosted by first quarter results

Last updated: 08:58 09 May 2017 EDT, First published: 03:58 09 May 2017 EDT

pharmaceutical
Valeant shares rose 18.5%

Valeant Pharmaceuticals International Inc (TSE:VRX, NYSE:VRX) chief executive Joseph Papa told investors that the company has met its internal expectations in the first quarter.

The drug maker’s shares shot up US$1.78, 18.5%, in New York’s pre-market dealing changing hands at US$11.48 each.

Revenues in the first quarter amounted to US$2.1bn, compared with US$2.37bn in the same period of 2016. Net income was reported at US$628mln, versus a US$374mln loss in the first quarter of last year.

Cash flow from operations totalled US$954mln. Some US$1.3bn was generated from asset sales in the first quarter, including the earlier than expected disposals of CeraVe, AcneFree and AMBI skincare brands.

The drug maker cut debt down to US$1.3bn as a result of the asset sales. Valeant’s indebtedness has been reduced from U$3.6bn since the end of last year’s first quarter.

"Our first quarter performance demonstrates that we are delivering on our commitments. We met our internal expectations, and we are continuing to make progress on our key initiatives, focus on the turnaround of our core businesses and improve internal operating efficiencies," Papa said.

"Our divestiture efforts and cash flow generation have led to a $3.6 billion reduction in total debt to date, since the end of the first quarter of 2016, and our successful debt refinancing provides us with a more comfortable maturity profile."

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