Rodman & Renshaw Analyst Bullish On Valeant Pharmaceuticals Intl Inc (VRX) Prior to Multiple Regulatory Decisions
Analyst Ram Selvaraju from Rodman & Renshaw believes that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has upcoming developments that will help revive the company after a rough couple months. The company has been the subject of a fraud allegation and a price practice probe, resulting in the stock plummeting 80% year-to-date. Selvaraju points to three regulatory decisions in the company’s pipeline over the next few weeks that, if approved, could significantly improve Valeant’s bottom line.
On July 19, Valeant will receive a decision for Relistor, a prescription medicine used to treat constipation that is caused by prescribed opioids. If approved, Selvaraju believes it could contribute over $1 billion in sales. Also on the 19th of July, Valeant will have its Biologics License Application for brodalumab, an antibody for plaque psoriasis, reviewed. Lastly, on July 21st Valeant will receive a decision on Vesneo, a treatment for glaucoma. The analyst believes this drug has the highest chance of being approved and can contribute over $500 million in sales in the U.S alone.
The analyst reiterated his Buy rating with a price target of $90.
According to TipRanks, 5 analysts are bullish on Valeant, 8 are neutral, and 3 are bearish. The average 12-month price target between these 16 analysts is $41.50, marking a 108% upside from current levels.