An Investor's View of Valeant Pharmaceuticals for 2017

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Part 2
An Investor's View of Valeant Pharmaceuticals for 2017 PART 2 OF 6

International Segment: Key Driver of VRX’s Revenue Growth in 2016

International segment

Valeant Pharmaceuticals’s (VRX) Bausch + Lomb/International Segment comprises business units such as Global Vision Care, Global Surgical, Global Consumer, Global Ophthalmology Rx, and International. This categorization follows the company’s new organizational structure, which was announced on August 9, 2016.

To learn about growth prospects for this segment, please read Valeant Counts on Baush + Lomb for Revenue Growth.

International Segment: Key Driver of VRX&#8217;s Revenue Growth in 2016

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Revenue projections

The above table shows the revenue growth trend for all business units in the Bausch + Lomb/International segment since 3Q15. Global Vision Care has posted strong growth despite several challenges faced by the company. This has enabled Valeant Pharmaceuticals to compete with other pharmaceutical companies such as Johnson & Johnson (JNJ), Novartis (NVS), and Pfizer (PFE).

To learn more about the Bausch + Lomb/International segment in 3Q16, please read How Did the Bausch & Lomb Division Perform in 3Q16?

In the first nine months of 2016, the Bausch + Lomb/International segment reported revenues of ~$3.4 billion, which equals year-over-year (or YoY) growth of ~0.4%. While the Consumer business and the Asian business have been positive influences for this segment, these effects were offset by modest pricing changes and unfavorable foreign exchange fluctuations.

Revenues have also been low in European markets due to a drop in customer inventory levels. Further, in 3Q16, demand for Valeant Pharmaceuticals’s Consumer and Ophthalmologic products declined in Poland.

If this negative revenue trend for the Bausch + Lomb/International segment continues in future quarters, it could adversely affect Valeant Pharmaceuticals stock as well as the Global X Top Guru Holdings Index ETF (GURU). Valeant Pharmaceuticals makes up ~0.26% of GURU’s total portfolio holdings.

In the next article, we’ll discuss the revenue trends for Valeant Pharmaceuticals’s Branded Rx segment in 2016.


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