Valeant Pharmaceuticals International Inc, which is under fire for massive price hikes of its two heart drugs, reported a better-than-expected quarterly profit, boosted mainly by strong performance in its U.S. dermatology business.
Net income attributable to the company fell to $49.5 million, or 14 cents per share, for the third quarter ended Sept. 30, from $275.4 million, or 81 cents per share, a year earlier.
Cash earnings, or profit adjusted for one-time items, was $2.74 per share, above the average analysts' estimate of $2.70 per share, according to Thomson Reuters I/B/E/S.
Revenue rose to $2.79 billion from $2.06 billion a year earlier, topping analysts' expectation of $2.78 billion. Sales from U.S. dermatology business rose 53 percent to $465.5 million.
Valeant also increased its full-year revenue forecast to $11 billion-$11.2 billion from $10.7 billion-$11.1 billion estimated previously. The company also increased cash earnings estimate to $11.67-$11.87 per share from $11.50-$11.80 per share.
The Canadian drugmaker said last week it had been subpoenaed by U.S. prosecutors, seeking details on its drug pricing and distribution practices.
The company tripled the price of its heart drug Isuprel and raised the price six-fold for another heart drug, Nitropress, after buying them in February. While the magnitude of the price hikes has put Valeant in political crosshairs, raising drug prices is not illegal in the United States.
Shares of many drugmakers have slumped since Democratic presidential hopeful Hillary Clinton last month proposed ways to prevent industry "profiteering."
Valeant's U.S.-listed shares were down 2.5 percent in premarket trading at $173.07.
Up to Friday's close, Valeant's U.S.-listed stock had fallen about 27 percent since Sept 21 when Clinton tweeted her intent to tackle high prices in some drug markets.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Anil D'Silva)
