Valeant Pharmaceuticals Role Xi: Less Luscious Lips

I detect it increasingly hard to operate out Valeant's revenue numbers in addition to their implications. Simple maths keeps bringing out astounding factoids. Again I  am harping dorsum to the sale of the Facial Injectables/Aesthetics franchise to Galderma. Again I am quoting Michael Pearson (the CEO) on the conference call:

On the aesthetics side, nosotros late sold sure enough facial injectable products to Galderma for simply about $1.4 billion, for a make of over $300 million. We are pleased to study that nether Valeant's ownership, nosotros accelerated the sales functioning of the Medicis aesthetics assets through Q1 of this twelvemonth compared to the functioning nether previous Medicis ownership. In April, nosotros announced our offering for Allergan in addition to publicly stated that nosotros would live on divesting these aesthetics products. 

As expected, the aesthetics draw organisation deteriorated inwards Q2. The physicians were confused every bit to what products nosotros wanted them to buy: our legacy Medicis products or our soon-to-have Allergan products. The uncertain condition of our MVP Program every bit good created concern for the doctors. Our reps in addition to administration were focused on pleasing their novel owners in addition to belongings dorsum sales until they worked for the novel company, in addition to our competitors were discounting heavily in addition to is proportionately trying to accept a temporary part to demonstrate weakness inwards our business.  

As a result, our sales dropped approximately 40% in Q2. Fortunately, these assets are straightaway safely inwards Galderma's hands, in addition to nosotros tin mail away straightaway focus on the residue of our business.

Okay, then what nosotros are beingness told is that the Facial Injectables draw organisation had sales increment all the means through Q1 of 2014 - in addition to presumably was every bit good doing pretty good inwards the minute quarter until Valeant announced that they were buying Allergan.

Then presumably they savage off farther when they announced that they were selling the unit of measurement to Nestle/Galderma.

There is alone 1 work here: dates.

The (unsolicited) offering for Allergan nearly a quarter of the means through the quarter. The bargain selling the fillers draw organisation was announced 2 thirds of the means through the quarter.

If y'all assume the driblet happened over these announcements the actual driblet had to live on enormous - good over 50 percent.

I run into 2 possibilities.

(a) the procedures didn't happen, or

(b) the procedures happened but using another company's fillers.

And for (a) to live on truthful the doctors had to forgo the income in addition to throughout America in addition to Canada - women volition receive got to a greater extent than wrinkles in addition to less luscious lips because they of a abrupt stopped using Restylane, Perlane in addition to Emervel injectable cosmetic treatments - in addition to all because of the machinations inwards Corporate America.

And for (b) to live on truthful doctors involve to know in addition to attention who is the provider of the injectables they use. This seems unlikely because the websites (typical example linked) are labelled Medicis non Valeant in addition to receive got been for some time.

Valeant states that the competitors discounted during the quarter. However the master copy contender is Juvederm owned yesteryear Allergan - in addition to they reported revenue increment driven by unit volume. There is no indication of discounting.

Oh the amazing ability of the deal.




John