uploads/2018/04/Branded-Rx-1.png

Valeant Pharmaceuticals’ Branded Rx Segment Performance in 4Q17

By

Updated

Branded Rx: Revenue trends

In 4Q17, Valeant Pharmaceuticals International’s (VRX) Branded Rx segment generated revenues of $602 million compared to $745 million in 4Q16. That was a 19% decline on a YoY (year-over-year) basis and a 5% decline quarter-over-quarter.

Valeant Pharmaceuticals’ Branded Rx revenues are made up of revenues from its subsidiary Salix Pharmaceuticals, Ortho Dermatologics products, Dendron Pharmaceuticals, dentistry products, and others.

In 4Q17 and 2017, Valeant Pharmaceuticals’ subsidiary Salix Pharmaceuticals reported revenues of $425 million and $1.6 billion, respectively, compared to $413 million and $1.5 billion, respectively, in 4Q16 and 2016, which reflected 3% and 2% YoY growth, respectively.

In 4Q17, Valeant Pharmaceuticals’ ortho-dermatologic and dentistry segments reported revenues of $136 million and $39 million, respectively, compared to $214 million and $39 million, respectively, in 4Q16. In 4Q17, ortho-dermatologic witnessed a 36% YoY decline.

In fiscal 2017, the ortho-dermatologic, Dendreon, and dentistry segments reported revenues of $606 million, $164 million, and $134 million, respectively, compared to $840 million, $303 million, and $152 million, respectively, in 2016.

Article continues below advertisement

In 4Q17 and 2017, Valeant Pharmaceuticals’ Branded Rx segment reported a non-GAAP (generally accepted accounting principles) gross profit of $517 million and $2.1 billion, respectively, compared to $625 million and $2.4 billion, respectively, in 4Q16 and 2016, which reflected declines of 17% and 13% YoY, respectively.

In 4Q17, the Branded Rx segment reported a non-GAAP gross margin of 86% compared to 84% in 4Q16.

Expense trends

In 4Q17, Valeant Pharmaceuticals’ Branded Rx segment reported non-GAAP R&D (research and development), SA&P (selling, advertising, and promotional), and G&A (general and administrative) expenses of $16 million, $143 million, and $21 million, respectively, compared to $18 million, $151 million, and $18 million, respectively, in 4Q16.

In 4Q17, the Branded Rx segment reported net operating expenses of $180 million compared to $187 million in 4Q16.

In 4Q17, the segment reported non-GAAP EBITA (earnings before interest, tax, and amortization) and EBITA margins of $337 million and 56%, respectively, compared to $438 million and 59%, respectively, in 4Q16.

Valeant Pharmaceuticals’ peers in the innovative drugs market include Eli Lilly (LLY), Bristol-Myers Squibb (BMY), and Amgen (AMGN), which reported revenues of $6.1 billion, $5.4 billion, and $5.8 billion, respectively, in 4Q17.

Advertisement

More From Market Realist