Valeant Pharmaceuticals International, Inc. (NYSE:VRX) – another day another cycle of (bad) news. The stock was down 7.2% to $28.87 a share, here is what the sell-side is saying.
Valeant Pharmaceuticals analysts react
Rodman & Renshaw
A closer look at the most pressing issues for Valeant. In our view, the most significant near-term overhangs on VRX stock involve the prospect of generic challenges to the company’s products, as well as the value of its assets and accounting restatements that must be reflected on the firm’s 2015 10-K. From our perspective, several of these aspects are not well understood. We reiterate our Buy rating and 12-month price target of $118 on VRX.
When will it be safe to go back into the water? Over the last few months, it seems every time investors thought that there would not be any new shoes to drop, more bad news occurred. For example, just over the weekend, Bloomberg carried an article that Sprout investors are concerned that Valeant has failed to successfully commercialize Sprout’s female libido pill Addyi. (A Valeant spokesperson told Bloomberg that the company “intends to comply with all of its obligations under [its] agreement with the former shareholders of Sprout. “)
Will the 10-K be filed by the end April as planned? Valeant intends to file by April 29, but investors should recall that its March 15 press release the company caveated that it would seek an extension “to be prudent.” Note that Valeant executives and auditors must sign off.
Xifaxan and Jublia: For the week ending March 18th, Xifaxan 550mg was up 27.7% YoY (vs. 28.6% last week), with TRx down 1% WoW. We note that Jublia TRx were down 3% WoW vs. Kerydin (Anacor competitor) TRx which were down 7%. Exhibit 5 outlines Xifaxan growth and Exhibit 6 outlines Jublia and Kerydin growth.