Valeant Pharmaceuticals (VRX) Proves Powerful Turnaround is in SessionAuthor: Mvusi NgubaneLast Updated: March 12, 2020 The crash of Valeant Pharmaceuticals International Inc shares is documented well enough. Diminished influence, weaker pricing power, regulation scandals, huge debt, fraudulent accounting… the list kind of drags on. Yet that is all in the rear view now. Looking forward, the Canadian drug company is clearly on a turnaround and analysts are lightening up over its shares.The previous fiscal quarter was pleasing enough too. A look at the company’s financials shows the firm beating most analyst expectations. Moving further up and up is the company’s Salix business, which shows very pleasing results for Q2. B&L can’t go without mention either. Over all, its results were rather solid as well.All of that, however, does very little to cancel out the negatives. Valeant still has a host of areas it needs to whip into shape. The performance of its Dermatology unit, for instance, was considerably weak. The long view sees that particular business keeping the company back from a fast-track recovery. All the other regular sour points can’t be ignored either.Overall, the turnaround strategy is starting to bear fruit. Valeant seemed bound for further dips in stock value earlier this year, even though headlines might have been a tad overblown. Alas, we are starting to see the company pull itself from the mud. The verdict among analysts is that late 2019 will see VRX worth $60. Now that’s a target most investors can get behind.Salix sets up extreme wins for VRXInvestors are probably grinning about the climb of the Salix business under Valeant Pharmaceuticals International Inc . The performance of this particular unit stood out most. Tuesday’s results show a 13 percent delivered climb as well as a 19 percent organic climb under the business’ Xifaxan unit.It was Valeants dedication to its sales force that propelled the boost. Ask any bullish analyst and you’ll be told that there is a lot more where that came from. Even better results should be seen over the next few quarters, assures Paul Herendeen. He is about to complete his first year as the company’s CFO and says the sales force will see enhancements through to September.US Diversified does well enoughUS Diversified performed moderately well too. Interesting to point out here is the business’ reduction of loss of exclusivity. It’s the bane of the pharmaceuticals sector, and Q2 sees less of the phenomenon taking place than projected. Things seem to have worked this year as Tuesday provided pleasing LOE in contrast to predictions.Photo: Ryan Remiorz/The Canadian Press via AP, FileThe benefits gained from slow declines are clear. More cash flow stays around for longer periods while products sell. However, investors should bear in mind the temporary nature of such slows. The growth results they propose are far from permanent.B&L International delivers good performanceAnother on the mark performer was B&L International Inc. Staying in line with Valeant’s compound annual growth rate layout of 4 to 6 percent, the business landed on a solid 6 percent growth. That projection is for the next 3 years too, which means B&L is kind of solid for now.Driving B&L International is its influence in international markets. China in particular is a great for the business, where it holds around 30 percent of the market. In the long-run, the company will benefit from its hold over China as the country’s population growths wealthier.Alas, it was reported that the Vyzulta business under B&L failed to gain approval for the second time. It was annoying for shareholders to hear the FDA still has not come around. Looking forward, near-term growth in B&L will be hindered by the rejection.Valeant bottom lineAs the company keeps up with its debt shedding exercises and businesses show more promise, Valeant will see steady gains in value moving forward. There is the issue of the firm’s Dermatology unit though, which is full of all kinds of disappointments. Overlooking that, investors can look forward a stronger VRX by year-end and beyond.