LAVAL, Quebec—Valeant Pharmaceuticals International (NYSE: VRX) reported that its total revenues in the third quarter ended September 30, 2016 were $2.48 billion versus $2.79 billion in the third quarter of 2015, a decrease of 11 percent. The company attributed the drop primarily to a decline in product sales revenues from its existing businesses. Third quarter revenues were also impacted by negative foreign currency exchange, as well as divestitures and discontinuations, which were partially offset by incremental product sales revenues from acquisitions completed in 2015, the company said in a statement.

On a sequential basis, Valeant said its revenues grew from a base of $2.37 billion in the first quarter of 2016 to $2.42 billion in the second quarter to $2.48 billion in the third quarter. Valeant posted a net loss of $1.22 billion in the third quarter as compared to net income of $49.5 million in year-ago period. The company recognized a goodwill impairment charge of $1.05 billion in the three months ended September 30, 2016, which it mainly attributed to the lower fair value in certain U.S. businesses, mainly its Salix business.

Adjusted net income (non-GAAP) in the third quarter of 2016 was $543 million as compared to $845 million in the third quarter of 2015. On a sequential basis, adjusted net income (non-GAAP) was $443 million in the first quarter of 2016, growing to $488 million the second quarter followed by $543 million in the third quarter.

Adjusted EBITDA (non-GAAP) for the third quarter of 2016 came in at $1.16 billion, an improvement over second quarter results of $1.09 billion and first quarter results of $1.01 billion.

"This past quarter, we made further progress toward establishing the new Valeant," said Joseph C. Papa, Valeant’s chairman and CEO. "We have, where appropriate, begun to centralize some parts of the business, and hired two key senior executives: Paul Herendeen, chief financial officer, and Dr. Louis Yu, chief quality officer. We also have started to present our financial results under three operating and reportable segments, which we believe will help clarify areas of strength and provide additional transparency. While we have revised our expectations for the remainder of 2016, I continue to be encouraged by the commitment of our employees who work each day toward meeting our mission of helping improve people's lives through our healthcare products."

In the third quarter of 2016, Valeant’s Bausch + Lomb / International segment reported revenues of $1.16 billion, an increase of 4 percent from $1.12 billion in the third quarter of 2015. The segment, which contributed 47 percent of total company revenues, reflected an increase in product sales revenues of $67 million in the third quarter of 2016 from all 2015 acquisitions, partially offset by a $4 million decline in product sales revenues from Valeant’s existing businesses. The decline was primarily due to lower realized prices related to Bausch + Lomb’s ophthalmology products as a result of the implementation of rebates and other price adjustments versus prior year, according to Valeant.

The decline in product sales due to lower realized prices was partially offset by higher volumes in U.S. consumer product sales, as well as product sales in Eastern Europe (excluding Poland) and China, Valeant said. The results were also affected by, to a lesser extent, the negative impact of foreign exchange on the existing business and from divestitures and product discontinuations.

On a sequential basis, Bausch + Lomb’s revenues grew from $1.07 billion in the first quarter of 2016 to $1.2 billion in the second quarter and $1.16 billion in the third quarter.