Valeant Pharma: Notes from presentation -- Call just started, already in Q&A
- Slower recovery in dermatology in Q2.
- Sees acceleration at Salix.
- Fixed dermatology issues at Walgreens:
- Restored net profitability to new dermatology prescriptions
- Aug 5 Launched coupon for independent pharmacies
- June 27 Launched new prior authorization program at Walgreens
- Aug 4 Xiafxan trx +28% vs. +32% in Q1; other Salix brands also growing
- Co unveils new strategy with new segments:
- Bausch + Lomb Intl (vison, surgical, consumer, opthamology: 50% of rev): Durable Growth: Sees rev +6-8%, EBITDA +8-12% through 2018
- Branded RX (Salix, derm, Dendreon: 30% of rev): sees rev +5-10%, EBITDA +7-10% through 2018
- US diversified (neuro, generics, solta, obagi 20% of rev): sees rev down 20%, EBITDA down 25% through 2018 due to generics.
- Balance sheet:
- 2016: Committed to minimum permanent debt pay down of $1.7B
- Cash flow available for debt repayment and other purposes expected to increase in 2017.
- Expect free cash flow and non-core asset sales to reduce debt by more than $5B over 18 months.
- Evaluating strategic alternatives for a number of non-core businesses and geographies that represent revenue greater than $2B.
- Received interest in $8 bln in non core assets
VRX +6% premarket