Valeant Pharmaceuticals Intl Inc (NYSE:VRX) provided an update on regulatory matters.
The Company announced that, on May 11, 2016, it applied for a customary management cease trade order (“MCTO”) from the Autorité des marchés financiers (the “AMF”), the Company’s principal securities regulator in Canada, relating to the trading in securities of the Company by the Company’s CEO and CFO and each other member of the Company’s board of directors. The Company has been advised by the AMF that the MCTO will be dated and published on May 17, 2016. The ability of other shareholders to trade in the securities of the Company will not be affected by the MCTO.
The MCTO application was made in connection with the Company’s previously announced delay in filing its interim financial statements for the quarter ended March 31, 2016, the related management’s discussion and analysis and certificates of its CEO and CFO (collectively, the “Canadian Required Filings”) with Canadian securities regulators until after the May 15, 2016 filing deadline. The Company expects to make the Canadian Required Filings on or before June 10, 2016.
The Company intends to comply with the provisions of the alternative information guidelines set out in Canadian National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults by providing bi-weekly updates by way of news release until the Canadian Required Filings have been made. (Original Source)
Shares of Valeant closed today at $27.06, up $1.16 or 4.48%. VRX has a 1-year high of $263.81 and a 1-year low of $23.55. The stock’s 50-day moving average is $31.41 and its 200-day moving average is $70.58.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on May 13, RBC analyst Douglas Miehm maintained a Hold rating on VRX, with a price target of $65, which implies an upside of 140.3% from current levels. Separately, on May 2, Piper Jaffray’s David Amsellem reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Douglas Miehm and David Amsellem have a total average return of -11.8% and -10.9% respectively. Miehm has a success rate of 38.9% and is ranked #3446 out of 3833 analysts, while Amsellem has a success rate of 34.0% and is ranked #3708.
The street is mostly Neutral on VRX stock. Out of 21 analysts who cover the stock, 10 suggest a Hold rating , 7 suggest a Buy and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $40.25, which represents a potential upside of 48.8% from where the stock is currently trading.
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.