Valeant 1st-qtr 2006 loss deepens to $6.4M

USA-based Valeant Pharmaceuticals says that, in the first quarter of 2006, revenues increased 10% on the like, year-ago period to $198.8 million, led by strong sales of its acquired products, which offset a 6% decrease on its royalties from the hepatitis C drug ribavirin.

However, the firm's net loss deepened to $6.4 million, or $0.07 per diluted share, including the impact of stock-based compensation expenses of $5.7 million, versus a net loss of $139.3 million, or $1.57 per diluted share, in first-quarter 2005. The California-headquartered drugmaker noted that, adjusted for non-Generally-Accepted Accounting Principles items, loss from continuing operations was $0.6 million, or $0.01 per diluted share, vs $4.3 million, or $0.05 per diluted share, and said that its restructuring initiative is on track and is targeting expense reductions in 2006 of approximately $20.0-30.0 million.

During the period, the firm's top performering acquired products included Kinerase (N6-furfuryladenine), the cannabinoid anti-emetic Cesamet (nabilone) and the injectable multivitamin Bedoyecta, which offset an income drop from Efudex and non-promoted products. Excluding acquired products, sales declined 4%.