Decline in revenue
In fiscal 2017, Valeant Pharmaceuticals (VRX) expects to report revenue of $8.9 billion–$9.1 billion. This projection is based on foreign exchange rates in February 2017. It also includes revenue expected from sales of the company’s skincare products, as Valeant does not expect the divestiture transactions to be completed before the end of 2017.
Measures to boost revenue
In addition to reducing debt, Valeant is focused on rapidly increasing its top line. The company has launched a new sales force team that will mainly be involved in marketing Xifaxan to primary care practitioners. To learn why this measure was required, please refer to VRX’s Gastrointestinal Segment Saw Robust Revenue Growth in 2016.
Valeant has also cleared up all issues with its Bausch & Lomb Tampa manufacturing facility, which is now ready for re-inspection by the FDA. The company has also recruited a new management team for its dermatology business. In 2016, Valeant entered into an agreement to extinguish a $210 million liability related to its legacy Salix Pharmaceuticals lawsuit. While the proposal will become effective only after court approval, the company has reported this liability provisionally in its financial statements. In the next article, we’ll explore Valeant’s margin growth trends in 2017.