The troubled drugmaker posted its first profit in six quarters, helped by a one-time tax gain. As Fred Katayama reports, Valeant also raised its earnings outlook.
Troubled drugmaker Valeant Pharmaceuticals swung to a quarterly profit from a loss. That's its first profit in six quarters. A one-time tax gain related to restructuring helped put it in the black. The Canadian drugmaker has been focusing on tis dermatology and eyecare businesses in a bid to comeback after it was probed over its accounting and pricing practices. Stifel analyst Annabel Samimy said, "We continue to expect headwinds to persist through the year from managed care rebating and generic competition to political/public/media rhetoric, though are encouraged by the early signs of progress towards a stabilized and focused business." Valeant's profit and falling revenue both missed analysts' estimates. But the company raised its full-year earnings forecast. Its shares surged higher, cutting its 31 percent loss this year. The stock rally came too late for Bill Ackman. The billionaire investor sold his entire stake in Valeant in March after trying to rescue it, losing more than $3 billion.