Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that its board of directors has elected John Paulson to serve as a director, effective June 14, 2017. With the addition of Mr. Paulson, Valeant has a total of 11 members on its board, 10 of whom are independent.
“We are pleased to welcome John to Valeant’s board of directors,” said Joseph C. Papa, chairman and CEO, Valeant. “With his significant business and financial expertise, John will be a strong addition to the board. His experience will be especially valuable as we continue to execute on our transformational strategy to turnaround Valeant.”
Mr. Paulson is the president of Paulson & Co., Inc., a New York-based investment firm.
“The strategic plan to transform Valeant smartly focuses on rebuilding the company’s core franchises in ophthalmology, dermatology and gastroenterology while simultaneously using the proceeds from the sale of non-core assets and operating cash flow to de-lever the company,” said Mr. Paulson. “I am fully supportive of the strategy and leadership team at Valeant.”
Shares of Valeant Pharmaceuticals are currently trading at $13.49, up $0.83 or 6.56%. VRX has a 1-year high of $32.75 and a 1-year low of $8.31. The stock’s 50-day moving average is $12.35 and its 200-day moving average is $12.93.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on June 16, Guggenheim analyst Louise Chen initiated coverage with a Buy rating on VRX and a price target of $18, which implies an upside of 42% from current levels. Separately, on the same day, RBC’s Douglas Miehm reiterated a Hold rating on the stock and has a price target of $19.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Louise Chen and Douglas Miehm have a yearly average loss of 14.9% and 15.2% respectively. Chen has a success rate of 31% and is ranked #4492 out of 4570 analysts, while Miehm has a success rate of 25% and is ranked #4456.
Overall, 3 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 2 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 $12.50 which is -1.3% under where the stock closed last Friday.
Valeant Pharmaceuticals International, Inc. engages in the development, manufacture, and market of a broad range of pharmaceutical products in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. It operates through the following segments: The Bausch + Lomb/International, The Branded Rx, and The U.S. Diversified products. The Bausch + Lomb/International segment is consist of the sale of pharmaceutical products, over-the-counter products, and medical devices products. The Branded Rx segment is comprised of pharmaceutical products related to the Salix product portfolio; dermatological product portfolio; branded pharmaceutical products, branded generic pharmaceutical products; over-the-counter products; medical device products; Bausch + Lomb products sold in Canada; and the oncology, dentistry, and health products for women. The U.S. Diversified Products segment is the sales in the U.S. of pharmaceutical products, over-the-counter products, and medical device products in the areas of neurology and certain other therapeutics classes, including aesthetics and generic products in the U.S.