Valeant Pharmaceuticals Intl Inc (NYSE:VRX) investors head for the hills today following Bloomberg’s report that the company’s former CEO Michael Pearson and former CFO Howard Schiller are allegedly the focus of an accounting fraud case. Valeant shares fell nearly 12% to $17.84 in Monday’s trading session.
In reaction, Valeant issued the following statement:
“As Valeant previously stated in response to a prior, similar press report, the Company previously disclosed in October 2015 that the United States Attorney’s Office for the Southern District of New York commenced an investigation involving Valeant. We have been fully cooperating with the authorities throughout the investigation, and we are in frequent contact and continue to cooperate with the U.S. Attorney’s Office for the Southern District of New York. We do not comment on rumors about investigations, and cannot comment on or speculate about the possible course of any ongoing investigation.”
“Valeant takes these matters seriously and intends to uphold the highest standards of ethical conduct as we move forward with our mission to improve people’s lives with our healthcare products.”
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on October 17, Wells Fargo analyst David Maris reiterated a Sell rating on VRX, with a price target of $19.50, which represents a potential upside of 9% from where the stock is currently trading. Separately, on October 14, Deutsche Bank’s Gregg Gilbert reiterated a Hold rating on the stock and has a price target of $29.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Maris and Gregg Gilbert have a yearly average return of 6.1% and a loss of 3% respectively. Maris has a success rate of 51% and is ranked #634 out of 4178 analysts, while Gilbert has a success rate of 37% and is ranked #3565.
Overall, 2 research analysts have rated the stock with a Sell rating, 6 research analysts have assigned a Hold rating and 3 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 $26.17 which is 46.7% above where the stock opened today.
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets. The Developed Markets segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products, and medical device products, as well as alliance and contract service revenues, in the areas of eye health, dermatology and podiatry, aesthetics and dentistry, (ii) sales in the U.S. of pharmaceutical products indicated for the treatment of neurological and other diseases, as well as alliance revenue from the licensing of various products it developed or acquired, and (iii) pharmaceutical products, OTC products, and medical device products sold in Canada, Australia, New Zealand, Western Europe and Japan. The Emerging Markets segment consists of branded generic pharmaceutical products and pharmaceuticals, OTC products, and medical device products. Products are sold primarily in Central and Eastern Europe (primarily Poland and Russia), Asia, Latin America (Mexico, Brazil, and Argentina and exports out of Mexico to other Latin American markets), Africa and the Middle East.