Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Valeant Pharma To Take Earnings Hit On Mylan's Zovirax Generic Launch

RELATED NEWS
Trade VRX now with 

Canadian drug maker Valeant Pharmaceuticals International, Inc. (VRX: Quote,VRX.TO: Quote) announced Thursday that it will be launching an 'authorized generic' of genital herpes drug Zovirax ointment later in the day. The move comes a day after Mylan, Inc. (MYL: Quote) received final approval to launch Acyclovir Ointment USP, 5%, a generic version of Zovirax ointment.

"Yesterday, Mylan announced they had received approval of a generic Zovirax® ointment. While the timing of a generic approval was always uncertain, this was not unforeseen and we were prepared for its eventuality. In response to the new generic approval, we will be launching an authorized generic of Zovirax® ointment today," Valeant Chairman and CEO Michael Pearson said in a statement.

Meanwhile, the Mississauga, Ontario-based specialty pharmaceutical company said the Acyclovir launch is expected to negatively impact its fiscal 2013 cash earnings by about $0.30 to $0.40 per share. Valeant added it did not include the 'isolated event' in its original budget expectations.

However, the company noted it will likely mitigate the impact of the generic introduction with the positive effect of several product acquisitions, the repricing of term-loan debt and other events that have occurred since it provided financial guidance in January.

Valeant had revealed in January that it expected to post cash earnings in a range of $5.45 to $5.75 per share for fiscal 2013.

"We continue to expect once again to deliver outstanding performance in 2013 and we will provide an update to our 2013 guidance on our first quarter financial results conference call in May," Pearson added.

Zovirax Ointment is indicated as a treatment for initial genital herpes and in limited non-life-threatening mucocutaneous herpes simplex virus infections in immunocompromised patients. Mylan's Acyclovir is the first generic version of Valeant's Zovirax Ointment.

According to IMS Health, Acyclovir Ointment USP, 5% had U.S. sales of about $230 million for the 12 months ended December 31, 2012. Mylan will start shipping Acyclovir Ointment immediately.

In Thursday's regular trading session, VRX is currently trading at $71.64, down $0.63 or 0.32% on a volume of 1.17 million shares. In the past 52-week period, the stock has been trading in a broad range of $42.47 to $76.56.

VRX.TO is currently trading on the TSX at $72.37, down $0.54 or 0.74% on a volume of 0.17 million shares.

Register
To receive FREE breaking news email alerts for Valeant Pharmaceuticals International and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks are likely to come under pressure in early trading on Tuesday, extending the downward move seen in the previous session. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 47 points. Eurozone business activity in September expanded at the slowest pace seen so far this year, adding pressure on the European Central Bank to provide more measures to stimulate the region. The composite output index of the purchasing managers' survey fell to a nine-month low of 52.3 in September from 52.5 in August, preliminary data from Markit Economics showed Tuesday. Defense forces of the United States and Arab partner nations have begun airstrikes inside Syria targeting terrorists from the Islamic State of Iraq and the Levant, the Pentagon announced on Tuesday. The nations fighting alongside the US include the United Arab Emirates, Bahrain, Jordan, Qatar and Saudi Arabia, which has a Sunni majority. Overnight, a mix of fighters, bombers, remotely piloted ai
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.