Valeant Pharmaceuticals International
, a research-based specialty pharmaceutical company, said Thursday its second-quarter loss widened from the year-ago period.
The company lost $45.1 million, or 49 cents a share, in the quarter, compared with $0.5 million, or 1 cent a share, a year ago. Adjusted for items, earnings were $14 million, or 15 cents a share in the most recent quarter. Analysts were expecting earnings of $9.9 million or 8 cents a share.
Second-quarter revenue rose 12.3% from a year ago to $230.2 million. Analysts were expecting revenue of $219.2 million.
The company expects to record restructuring charge of $90 million to $115 million, of which $53.1 million was recorded in the second quarter, and $79.5 million was recorded in the first half of 2006.
The company swung to operating loss of $30.9 million in the quarter, compared with operating income of $21.2 million, a year ago. Operating margin for the quarter was negative 13.4%, compared with positive margin of 10.3%, a year ago.
By segment, second-quarter revenue from product sales rose 15% from a year ago to $208.5 million. But revenue from ribavirin royalties fell 11% to $21.6 million.
The company also said that it settled a lawsuit against Milan Panic, its former chairman and chief executive officer, for $20 million. Under the terms of the settlement, Valeant will receive an initial cash payment of $8 million in the third quarter, with the remainder due within one year.
The settlement, which resolves all outstanding claims with Panic, will result in a gain of about $18 million, the company said. The gain will be recorded in the third quarter.
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