Analyst’s Point of View on Valeant Pharmaceuticals International, Inc. (NYSE:VRX)


On Thursday, Shares of Valeant Pharmaceuticals International, Inc. (NYSE:VRX), lost -14.36% to $78.77.

Valeant Pharmaceuticals International, exchanged hands with 57,293,517 shares, higher as compared to its average daily volume of 9,655,760 shares. 66.84% of the shares are owned by institutions for the company while for the industry it is 0.73%, and on sector level, it is 1.07%.

Valeant Pharmaceuticals International, declared recently that it is severing all ties with Philidor Rx Services, LLC, and that Philidor has informed Valeant that it will shut down operations as soon as possible, consistent with applicable laws.

The newest allegations about activities at Philidor raise additional questions about the companys business practices, said J. Michael Pearson , Valeants chairman and chief executive officer. We have lost confidence in Philidors ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve.

We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been, Pearson said. We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility. Operating honestly and ethically is our first priority, and you have my absolute commitment that we will make it right.

Valeant intends to develop a plan to ensure patients access to drugs is minimally disrupted. Valeant has informed Philidor that to the extent that managed care plans will no longer reimburse prescriptions in process, Valeant will fill them at the companys expense.

In the Third Quarter 2015, Philidor represented 6.8% of total Valeant revenue.

Valeant Pharmaceuticals International, has dropped -70.14% from its peak and trades at just 4.91 times forward earnings projections. The consensus price target for the stock is negative $52.38 a share. The 52-week range is $88.50 to $263.81. Down -40.29% over 12 months, the company has a market cap of $26.75B. The P/E ratio is 44.50.

Shares of Valeant Pharmaceuticals Intl (VRX) were the recipient of a large improvement in short interest in the month of October. As of October 15th, there was short interest totaling 10,537,201 shares, an improvement of 49.3% from the September 30th total of 7,056,242 shares, ARN reports. About 3.1% of the company’s shares are sold short. Based on an average daily trading volume, of 6,477,754 shares, the short-interest ratio is presently 1.6 days.

The stock price is predictable to reach $ 196.42 in the short term. The number of analysts agreeing with this consensus is 12. The higher estimate for the short term price target is at $285 while the lower estimate is at $135. The standard deviation of the price stands at $49.25.

A number of research analysts have recently commented on VRX shares. BMO Capital Markets upped their price target on Valeant Pharmaceuticals Intl from $285.00 to $293.00 in a research report on Tuesday, September 15th. Scotiabank raised their target price on Valeant Pharmaceuticals Intl from $235.00 to $295.00 in a report on Thursday, October 1st. JPMorgan Chase & Co. reiterated a “buy�? rating on shares of Valeant Pharmaceuticals Intl in a report on Sunday, July 26th. Canaccord Genuity reissued a “buy�? rating on shares of Valeant Pharmaceuticals Intl in a research note on Sunday, July 26th. Finally, Guggenheim reaffirmed a “buy�? rating and set a $300.00 price target on shares of Valeant Pharmaceuticals Intl in a research report on Friday, July 17th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Buy�? and a consensus target price of $189.77.

Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. The company offers Solodyn to treat red and pus-filled pimples of acne in patients, in addition to Ziana, Acanya, Atralin, Retin- A Micro, and ONEXTON gel; Wellbutrin XL for major depressive disorder in adults; Jublia for onychomycosis of the toenails; Xenazine for chorea; Targretin for Cutaneous T-Cell Lymphoma; Arestin, a subgingival sustained-release antibiotic; and PROVENGE for the treatment of prostate cancer.

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