However, Mr. Papa’s plan to regain stability and ensure Valeant’s ability to repay debt did not reassure investors.
The company’s first quarter earnings — the last set of financial results under former CEO J. Michael Pearson — showed two of Valeant’s key categories, dermatology and prescription ophthalmology, declined by 43 percent and 40 percent, respectively, according to the report.
On Tuesday morning at 9:11 a.m., shares were down 18 percent to $23.54 before the markets opened in New York
Valeant’s turnaround will be a “multi-year process,” Mr. Papa said on a phone call with analysts Tuesday, according to Bloomberg. “We have a stabilization plan and we will execute on this plan. We’ve hit a few speed bumps.”
Earnings this year will be between $6.60 and $7 a share, excluding certain items, Valeant said in a statement Tuesday. In March, under Mr. Pearson’s leadership, the company anticipated earnings of $8.50 to $9.50 per share. Analysts were predicting earnings of $8.49 a share, according to Bloomberg. In the first quarter, earnings of $1.27 missed analysts’ predictions by 10 cents.
Mr. Papa said he expects it to take three to six months to stabilize the company before it embarks on a long-term, comprehensive transformation. He said the company will also divest some non-core assets, according to the report.
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