As shares of Valeant Pharmaceuticals rallied nearly 9 percent after the company’s earnings report, Chairman as well as CEO Joseph Papa joined CNBC’s Jim Cramer to explain the move.
In a “Mad Money” interview, Papa said Valeant’s Salix unit, which makes gastrointestinal treatments, as well as its Bausch & Lomb arm, which makes optical products, were the company’s “growth drivers.”
Together, the two account for 76 percent of Valeant’s business. as well as while the company reported a first-quarter loss, Salix as well as Bausch & Lomb, combined, grew by 10 percent.
the item was the very first time since 2015 which Valeant delivered organic growth, Papa told Cramer.
Valeant also announced on Tuesday which the item could change its name to Bausch Health Companies, mirroring the name of its flagship optics unit.
“the item’s a 165-year-old company, Bausch & Lomb, as well as, importantly, features a great legacy of innovation,” Papa said on “Mad Money.” “They arrived on the scene with some of the first eyeglasses. They arrived on the scene with some of the first soft contact lenses. So we’re building on which innovation.”
The CEO said which changing the name could broadcast which his company doesn’t just make pharmaceuticals, however also manufactures various other medical devices as well as products.
One of Valeant’s newest products, Xifaxan, which treats irritable bowel syndrome as well as various other gastrointestinal symptoms, hit $1 billion in sales just within the first quarter of 2018.
Papa said which drugs like Xifaxan could help Valeant create shareholder value as well as reduce its $25 billion debt hoard, $6.9 billion of which the company has paid down since 2016.
“I increased research as well as development This kind of year by 15 percent because we firmly believe the item is usually these fresh products which will help us to improve our earnings,” Papa told Cramer, adding which the $6.9 billion payment gave Valeant “freedom to operate” as well as innovate.
“[at This kind of point,] we can invest in products like Xifaxn … as well as then grow those products to help patients, to help improve their lives,” the CEO said. “which’s what we think’s going to help us drive the long-term shareholder value for our company.”