Paulson Reduces Holdings of Valeant Pharmaceuticals Intl Inc (VRX) Due to Required Rebalancing of Portfolio


Valeant Pharmaceuticals Intl Inc (NYSE:VRX) confirms that Paulson & Co., Inc. has filed a Schedule 13D with the U.S. Securities and Exchange Commission to reflect certain changes related to its equity holdings of Valeant. Specifically, Paulson sold 974,365 shares today at $14.66/share. Paulson continues to own 20,839,035 Valeant shares.

“These changes in our Valeant holding are required divestments and do not reflect any change in my confidence of the strategy to transform Valeant. I continue to remain fully supportive of the Valeant leadership team,” said John Paulson, president of Paulson & Co., Inc. “These sales are due to the rebalancing of our portfolios based on asset flows, and represent approximately 4.5 percent of our common stock holdings.”

Shares of Valeant closed today at $14.07, down $1.57 or -10.04%. 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 $16.51 and its 200-day moving average is $13.38.

On the ratings front, VRX has been the subject of a number of recent research reports. In a report released today, Piper Jaffray analyst David Amsellem reiterated a Sell rating on VRX, with a price target of $14.00, which represents a slight downside potential from current levels. In addition, H.C. Wainwright’s Ram Selvaraju reiterated a Hold rating on the stock and has a price target of $17.00.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Amsellem and Ram Selvaraju have a yearly average loss of 1.2% and 9.5% respectively. Amsellem has a success rate of 44% and is ranked #3829 out of 4628 analysts, while Selvaraju has a success rate of 33% and is ranked #4579.

Sentiment on the street is mostly neutral on VRX stock. Out of 14 analysts who cover the stock, 8 suggest a Hold rating , 3 suggest a Sell and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $19.00, which represents a potential upside of 35% from where the stock is currently trading.

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.