Company Update (NYSE:VRX): Valeant Pharmaceuticals Intl Inc Announces Phase 3 Results For Psoriasis Treatment IDP-118


VRX

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced positive results from a Phase 3, multicenter double-blind, randomized, vehicle-controlled clinical study to assess the safety and efficacy of IDP-118 (halobetasol propionate and tazarotene) lotion in the treatment of plaque psoriasis.

Within the Phase 3 study of 215 adult subjects with moderate to severe psoriasis, IDP-118 showed statistical significance to vehicle with a treatment success rate of 45.33% and a p<0.001.  The primary endpoint of the 12-week study was achievement of a “clear” to “almost clear” score based on an Investigator Global Assessment (IGA) at 8 weeks, and at least 2 grade improvement in the IGA at weeks 12, 6, 4 and 2 as secondary endpoints.

“We are pleased to share the positive results from the Phase 3 study of this important new formulation,” stated Joseph C. Papa, Chairman and Chief Executive Officer.  “Psoriasis is often difficult to treat, and dealing with this life-long condition can significantly impact a patient’s quality of life.  Valeant remains committed to continued research into innovative new treatments to improve the lives of those who suffer from psoriasis.”

While halobetasol propionate and tazarotene are both approved and used to treat plaque psoriasis, each has certain attributes that can influence the treatment duration owing to potential adverse events.  Based on existing data from our clinical studies, the combination of these ingredients in IDP-118 with a dual mechanism of action potentially allows for expanded use of these active ingredients with reduced adverse events.

The Phase 3 program was preceded by a successful Phase 2 study where the combination product IDP-118, with a treatment success rate of 52.5%, was superior to each of the actives halobetasol propionate and tazarotene as well as the vehicle. Valeant expects to have data from a second confirmatory pivotal Phase 3 study in 2017. (Original Source)

Shares of Valeant Pharmaceuticals are currently trading at $15.20, up $0.12 or 0.80%. VRX has a 1-year high of $119.87 and a 1-year low of $13.77. The stock’s 50-day moving average is $22.06 and its 200-day moving average is $25.12.

On the ratings front, VRX stock has been the subject of a number of recent research reports. In a report issued on November 30, Wells Fargo analyst David Maris reiterated a Sell rating on VRX, with a price target of $11.50, which represents a potential downside of 24% from where the stock is currently trading. Separately, on November 29, Deutsche Bank’s Gregg Gilbert maintained a Hold rating on the stock and has a price target of $24.

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 8.6% and a loss of 7.7% respectively. Maris has a success rate of 47% and is ranked #625 out of 4271 analysts, while Gilbert has a success rate of 30% and is ranked #4064.

Sentiment on the Street is mostly neutral on VRX stock. Out of 11 analysts who cover the stock, 7 suggest a Hold rating , 2 suggest a Sell and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $20.13, which implies an upside of 33% from current levels.

Valeant Pharmaceuticals International, Inc. is a pharmaceutical company which engages in developing, manufacturing, and marketing pharmaceutical products in the areas of dermatology, eye health, neurology, and generics. It operates through the Developed Markets and Emerging Markets. The Developed Markets segment offers over-the-counter and medical products as well as alliance and contract service revenues, in the areas of dermatology and podiatry, neurology, gastrointestinal disorders, eye health, oncology and urology, dentistry, aesthetics, and women’s health. The Emerging Markets consists of branded generic pharmaceutical and branded pharmaceuticals; over-the-counter and medical device products.