Valeant Pharmaceuticals International Inc. on Wednesday cut its revenue and profit guidance for the fourth quarter and the full year, ahead of its meeting with investors. The company also issued earnings guidance for 2016.
For 2015, the Canadian drugmaker expects an adjusted profit of $10.23 to $10.33 per share on sales of $10.4 billion to $10.5 billion. Earlier, the company expected to earn $11.67 to $11.87 per share on $11 billion to $11.2 billion in revenue. Fourth-quarter earnings per share were revised to $2.55 to $2.65, from $4 to $4.20 it predicted on Oct. 19, the company said in a statement.
Valeant added that it will try and reduce debt by about $2.25 billion in 2016.
For 2016, Valeant said it expects adjusted earnings will come in between $13.25 to $13.75 per share on revenue of $12.5 billion to $12.7 billion. Analysts have predicted earnings of $14.27 a share and $12.55 billion in sales, the Wall Street Journal reported.
The cut in forecast comes a few months after Valeant got embroiled in a controversy over drug pricing and its relationship with specialty drug distributor Philidor RX. In October, Valeant ended its relationship with Philidor after a wave of complaints accusing the distributor of convincing insurers to pay for Valeant drugs instead of cheaper generic alternatives.
Shares of Valeant, which is also facing multiple investigations over antitrust violations and drug pricing arrangements, were initially down during pre-market futures trading in New York, but rose up 0.8 percent at $110.50.
On Wednesday, the drugmaker got a letter from the U.S. Congress asking for documents related to drug pricing and its former relationship with Philidor, according to Fortune. Elijah Cummings, D-MD, directly addressed Valeant CEO Michael Pearson in the letter -- for the third time since August -- questioning the company over steep price increases of its Isuprel and Nitropress heart medications.
“To date, you have provided none of the requested documents or interviews,” Cummings wrote, according to the Fortune report. “Your failure to provide any legitimate justification for this obstruction raises additional, serious concerns about your company’s lack of transparency.” Valeant has disputed the claim and said it has provided information to the committee.