Valeant caught the most heat over a handful of drugs - and now they’re taking a hit (VRX)

Valeant reported mixed earnings Tuesday morning, and the stock is up 13%.

"I am continuously encouraged by the commitment of our employees who work hard daily, rebuilding our relationships with prescribers, patients and payors, and regaining the trust of our debt holders and shareholders," Valeant CEO Joseph Papa said in a release.

The earnings gave an important glimpse into the effects of some of the headlines Valeant's made over the last year. In particular, its product revenue.

Xifaxan

Xifaxan, the drug that was expected to make $1 billion in 2016, came in at $200 million in revenue for the second quarter 2016 and was the top brand for Valeant this quarter. On the earnings call, Papa said he expects Xifaxan to hit its peak performance in a few years, with the potential to make up to $5 billion.

But not everyone is convinced. 

"Based on the top line results, we think Xifaxan was probably weak and not on its way to the $1 billion mark VRX had forecast for 2016," Wells Fargo analyst David Maris said in a note Tuesday. 

Valeant slide deck

Isuprel and Nitropress

Heart medications Isuprel and Nitropress were two of the biggest offenders of price increases in 2015. They were the two drugs singled out from Valeant's portfolio by Congress at the beginning of their probes, and it showed in their Q2 results. Isuprel's revenue was down 19% year-over-year, while Nitropress' was down 46%. 

Conversely, Cuprimine, a drug that Congress singled out in later hearings that's used to treat a rare disorder called Wilson's disease, saw revenue surge 202% during 2015. 

Jublia

The $1,000 toe fungus drug got hit hard in Q2, with revenue down almost 70% compared to a year ago. That may be in part because companies like CVS are asking patients to try other, cheaper, solutions first before turning to the Valeant product. 

Valeant slide deck

Dermatology

Valeant's dermatology business has been hit hard, with revenue down more than 50% year-over-year. One acne drug in particular, Solodyn (which used to be one of Valeant's top 10 brands), made $65 million in revenue during Q2 2015, while this year, it brought in just $17 million during the second quarter. Solodyn was one of the drugs distributed by Philidor, the mail-order pharmacy that came under scrutiny last fall. Valeant subsequently cut ties with the company. Valeant has since partnered with Walgreens and offered an up to 10% discount on dermatology and ophthalmology products.

Valeant slide deck

Perhaps by next year, these product revenues changes will look a little less extreme. 

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