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Valeant Pharmaceuticals International Inc., the drugmaker that has come under fire for raising the prices of old medications it acquires, reported third-quarter profit that beat analysts' estimates as sales for dermatology and contact lens products climbed.
The profit of $2.74 a share, excluding one-time items, topped a $2.70 average of 20 analysts' estimates compiled by Bloomberg. Revenue rose 36 percent from a year earlier to $2.8 billion. Analysts had projected $2.78 billion on average.
Valeant said last week that it received subpoenas from the U.S. Attorney's Office in Massachusetts and the Manhattan U.S. Attorney's Office seeking information on its patient assistance programs, drug distribution and pricing decisions.
Lawmakers in Washington have demanded to know why Valeant's heart drugs Nitropress and Isuprel increased by 212 percent and 525 percent after company acquired the rights to sell them.
This month, Valeant responded to critics of its drug prices in a filing, saying that various researchers were inaccurate and that the company hadn't benefited as much from drug-price increases as the reports had said.
Valeant believes it has operated in a "fully compliant manner," Chief Executive J. Michael Pearson said in a statement.
Valeant raised its forecast for sales in the fourth quarter to $3.25 billion to $3.45 billion, and adjusted earnings on a per-share basis to $4 to $4.20. Previously, the company had forecast revenue of $3.2 billion to $3.4 billion and adjusted earnings of $3.98 to $4.18 a share.