Valeant expects the launch of the generic herpes drug to be detrimental to the benefits
Valeant Pharmaceuticals International Inc, the largest Canadian manufacturer of pharmaceuticals, said it expected Mylan Inc to launch a generic version of Valeant’s genital herpes drug to reduce its cash earnings per share for the year between 30 and 40 cents.
The company said it would launch its own generic ointment, Zovirax, on Thursday.
Mylan, a generic pharmacist, said Wednesday it received final approval of the first generic version of Zovirax from the US Food and Drug Administration.
Valeant said in January that it sees the 2013 adjusted profit, which calls earnings per share in cash, between $ 5.45 and $ 5.75.
The company, caught in a bidding war with German pharmaceutical company Merz Pharma Group for cosmetics maker Obagi Medical Products Inc, has been increasing its skin care portfolio in the United States.
“While the timing of a generic approval was always uncertain, this was not unforeseen and we were prepared for its eventuality,” said CEO Michael Pearson.
However, the company did not factor in the generic launch in its original budget expectations.
The company said there are other shares, such as several product acquisitions, repricing its long-term debt that could mitigate the impact of Zovirax losing patent protection.