• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
FinanceValeant

Here’s What Valeant’s Earnings Tell Us About the Future of the Drug Maker

By
Jen Wieczner
Jen Wieczner
Down Arrow Button Icon
By
Jen Wieczner
Jen Wieczner
Down Arrow Button Icon
March 14, 2016, 7:36 PM ET
Pershing Square's Bill Ackman and Valeant Pharmaceuticals International's Michael Pearson Interview
Photograph by Bloomberg — Getty Images

Valeant Pharmaceuticals (VRX) will report earnings results for the fourth quarter of 2015 on Tuesday—an event that was supposed to happen two weeks ago but which the company postponed amid the return of its CEO Michael Pearson after his months-long battle with pneumonia.

Shareholders are anxious as ever to hear what Valeant has to say—especially after it canceled another informal call it had set up in lieu of the postponed earnings—on a number of pressing issues, particularly the company’s recently announced plans to restate its earnings, as well as its disclosure that it is under investigation by the Securities and Exchange Commission.

But investors shouldn’t get their hopes up for too many new details on these subjects on tomorrow’s conference call at 8 a.m. E.T. That’s because the company is only announcing its financial results for the final quarter of 2015, not the full year; it has delayed releasing its annual report indefinitely while it completes an internal review of its accounting practices relating to Philidor, the controversial pharmacy with which it has since severed ties. That same accounting review is what led Valeant to say it was restating its earnings—but it said the restatement would involve moving revenue booked in the latter part of 2014 to 2015 instead. We likely won’t know the full extent of the restatement, however, until Valeant reveals its total 2015 earnings.

Likewise, Valeant has also said that it was waiting to officially disclose its SEC investigation in its annual report, but as that had been delayed, so had the disclosure. Whether Valeant includes details about the investigation in its quarterly report tomorrow or is willing to answer analysts’ questions about it on the conference call remains to be seen.

But shareholders should expect reassurances about Pearson’s health, as well as updates on his revamped strategy for Valeant, which he has said will rely less on acquiring drugs and raising their prices than it did in the past. Analysts will be paying especially close attention to the company’s outlook for 2016, as it had withdrawn its previous guidance upon Pearson’s return to work, spooking investors.

They will also be curious to see the financial impact of Valeant’s new distribution partnership with Walgreens (WBA), announced in mid-December, through which Valeant intends to sell drugs at a discount and make up for some of the sales volume it lost when it broke away from Philidor. Valeant has previously estimated that those losses amounted to 20% of its prescription revenue last quarter, but investors should pay close attention to that number tomorrow. While the Walgreens sales won’t be evident yet in Valeant’s fourth-quarter earnings, as the 20-year agreement didn’t take effect til this year, Valeant may disclose one-time expenses relating to the deal.

Wall Street is expecting Valeant’s revenue to jump 21% to $2.77 billion for the fourth quarter of 2015, with adjusted earnings-per-share of $2.62.

The last time Pearson spoke publicly about the business was on Dec. 16 at Valeant’s investor day, when he appeared humbled and somewhat defeated, stating, “If the board wants to fire me, they’re welcome to fire me.” He also acknowledged that for employees working at the embattled company, it had become “tough to go home.” Less than 10 days later, Pearson was hospitalized with pneumonia. Valeant’s stock price has fallen about 70% since last summer, when the company’s recent troubles began.

About the Author
By Jen Wieczner
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Clinical Psychologist Daniel Wendler
ConferencesWorkplace Innovation Summit
A ‘proudly autistic’ workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
35 minutes ago
Hiba Mona Anver, wearing a black and white striped dress, gestures with her hands as she speaks onstage.
North AmericaWorkplace Innovation Summit
80% of companies have an immigrant in a top leadership role—Trump’s visa crackdown is forcing them to make a ‘plan C,’ warns immigration expert
By Sasha RogelbergMay 20, 2026
1 hour ago
harvard
EconomyHarvard University
Harvard admits it was too easy to get A grades, vows crackdown
By Leah Willingham and The Associated PressMay 20, 2026
1 hour ago
Jensen Huang, chief executive officer of Nvidia Corp
InvestingNvidia
The one number that will actually move Nvidia’s stock Wednesday night
By Eva RoytburgMay 20, 2026
2 hours ago
bezos
Personal FinanceNew York City
Jeff Bezos on Zohran Mamdani’s big mistake: ‘When you don’t know how to solve a problem, create a villain, blame them’
By Nick LichtenbergMay 20, 2026
2 hours ago
electrical transmission lines hang over a housing development on March 24, 2026 in Sylmar, California.
EnergyElectricity
2025 was a turning point for your electricity bill and it’s just getting more expensive from here. It’s not just data centers
By Tristan BoveMay 20, 2026
3 hours ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
23 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
3 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
8 days ago
Current price of oil as of May 19, 2026
Personal Finance
Current price of oil as of May 19, 2026
By Joseph HostetlerMay 19, 2026
1 day ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
2 days ago
CNN analyst and 'The Morning Show' producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
Arts & Entertainment
CNN analyst and 'The Morning Show' producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
By Emma BurleighMay 19, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.