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Valeant explodes after boosting guidance (VRX)

Valeant Pharmaceuticals International's stock surged by 15% to $11.21 a share after the company raised its 2017 earnings guidance.

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Shares of Valeant Pharmaceuticals surged by 15% to $11.21 after the company raised its 2017 earnings guidance.

The embattled drugmaker raised its full-year adjusted EBITDA forecast to a range of $3.6 billion to $3.75 billion, up from the range of $3.55 billion to $3.7 billion that the company provided in February. In addition, Valeant's first-quarter adjusted EBITDA of $861 million exceeded the consensus forecast of $854.9 million.

The company also reduced debt by $1.3 billion in the first quarter and executed a debt refinancing. As of year-end 2016, Valeant had accumulated $30 billion in total debt.

"Our divestiture efforts and cash flow generation have led to a $3.6 billion reduction in total debt to date, since the end of the first quarter of 2016," chairman and CEO Joseph C. Papa said in a statement. "We met our internal expectations, and we are continuing to make progress on our key initiatives."

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The stock increase is welcome news for investors who have seen Valeant's share price plunge by 96% since reaching a record high in August 2015. The company has come under fire in the past couple of years over controversial drug-price hikes and the use of a specialty pharmacy for distribution.

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