Valeant Pharmaceuticals International Inc. (NYSE: VRX) appears to have a turnaround underway, after the company reported its second-quarter financial results before the markets opened on Tuesday. This stock has been a dog over the past year, falling from a high of about $250 to below the $20 mark. However, Joe Papa taking over as chief executive officer and Bill Ackman joining the board seem to have kick-started a recovery.

The company said that it had $140 in earnings per share (EPS) on $2.42 billion in revenue. Consensus estimates from Thomson Reuters had called for $1.48 in EPS on $2.46 billion in revenue. The same period from last year had $2.56 in EPS on $2.73 billion in revenue.

Despite earnings being slightly weaker than analysts were looking for, guidance for the 2016 full year picked up the slack. The company expects EPS to be in the range of $6.60 to $7.00 on revenues between $9.9 billion and $10.1 billion. The consensus estimates are $6.53 in EPS on $10.0 billion in revenue for the full year.

During the quarter, Valeant took steps to streamline its portfolio. Overall it has sold, or agreed to sell, the brodalumab EU rights, Synergetics USA OEM business and Ruconest for a total combined upfront payment of $181 million and additional consideration up to $329 million for achieving specific approval and sales milestones.

Specifically for Ruconest, the company entered into a definitive agreement to divest all North American commercialization rights to Pharming Group. Under the terms of the agreement, Pharming will pay Valeant aggregate consideration of up to $125 million, including an upfront fee of $60 million payable upon closing and certain sales-based milestone payments of up to $65 million.

Papa commented on earnings saying:

We continue to make progress towards stabilizing the organization. We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients’ lives, and will involve reorganizing our company and reporting segments. 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. Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters.

Cash flow from operations was $448 million in the second quarter, as compared to $411 million in the same quarter of 2015. On the books, Valeant’s cash and cash equivalents totaled $852.4 million at the end of the quarter, up from $597.3 million at the end of 2015.

Shares of Valeant closed Monday up 2.2% at $22.45, with a consensus analyst price target of $42.61 and a 52-week trading range of $18.55 to $252.51. Following the release of the earnings report, the stock was up 6.6% at $23.93 in early trading indications on Tuesday.

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