Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stated that 1,297,399 shares pledged to Goldman Sachs to secure loans made to chairman and chief executive officer J. Michael Pearson were sold by Goldman Sachs on November 5, 2015. Goldman Sachs held the shares as collateral for loans extended to Pearson.
As disclosed in the company’s proxy statement filed on April 22, 2014, the company’s board permitted Pearson to pledge approximately two million shares. As of the company’s most recent proxy statement, filed April 9, 2015, those shares represent approximately 20.19% of his shares beneficially owned. Pearson pledged those shares to Goldman Sachs as collateral for loans of approximately $100 million that he used for, among other things, financing charitable contributions, including to Duke University, and helping to fund a community swimming pool, purchasing Valeant shares, and meeting certain tax obligations related to the vesting and payment of Valeant compensatory equity awards. Goldman Sachs required repayment of the loans, and has informed the company that it sold the shares it held as collateral in satisfaction of the loans. After repayment of the loans with the proceeds from the sale by Goldman Sachs, the loan agreements will terminate and there will be no amounts outstanding under those agreements.
“Since joining Valeant, I have not sold any shares provided to me as compensation, and it was not my desire that shares be sold now,” Pearson said. “I have complete confidence in Valeant’s ability to move forward and continue meeting our commitments to patients, doctors, and shareholders.”
In January 2015, Pearson agreed to not receive a base salary and instead be compensated exclusively through cash and stock incentive awards tied to performance. (Original Source)
Shares of Valeant Pharmaceuticals are up 3.83% to $81.77 in pre-market trading. VRX has a 1-year high of $263.81 and a 1-year low of $73.32. The stock’s 50-day moving average is $158.24 and its 200-day moving average is $213.34.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on November 4, Mizuho analyst Irina Rivkind Koffler reiterated a Buy rating on VRX, with a price target of $155, which represents a potential upside of 96.8% from where the stock is currently trading. Separately, on November 3, RBC’s Douglas Miehm reiterated a Buy rating on the stock and has a price target of $213.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Douglas Miehm have a total average return of 43.8% and -8.3% respectively. Koffler has a success rate of 66.7% and is ranked #3 out of 3827 analysts, while Miehm has a success rate of 42.9% and is ranked #3334.
Overall, one research analyst has rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $196.00 which is 148.8% above where the stock closed yesterday.
Valeant Pharmaceuticals International Inc is a specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of generic and branded generic pharmaceuticals, over-the-counter products and medical devices.