Valeant Pharmaceuticals Intl Inc (NYSE:VRX) wholly owned subsidiary Obagi Medical Products, a long-time leader in professional skin care, today announced a collaboration with Nextcell Medical Company to claim exclusive distribution of Suzan Obagi, M.D.’s line of skin care products throughout the United States.
Established in 2013 with renowned cosmetic surgeon and dermatologist, Suzan Obagi, M.D., Nextcell Medical has been diligently working on new innovations that will change the industry’s approach to skin care. In their strategic relationship, Obagi and Nextcell have joined forces to introduce a next generation line of clinical skin care products. Obagi intends to continue to invest in Nextcell’s research and development efforts.
“I am so excited to finally unveil my line alongside the Obagi® line of products,” said Suzan Obagi, M.D. “We have been working long and hard on designing a new concept of skin care for the modern patient. With our visions aligned, I can’t think of a better company than Obagi to introduce our products.”
“The relationship between Obagi and Nextcell is a forward move for this important brand,” said Joseph C. Papa, Chairman and CEO of Valeant. “Dr. Suzan Obagi brings extensive academic and clinical experience to the rich history of Obagi.”
“We are thrilled to have the opportunity to work with Obagi and continue to build on the brand’s already strong reputation and unsurpassed brand recognition,” stated Mazen F. Youssef, President and CEO of Nextcell. “We are confident our collaboration will accelerate the growth of both companies and complete Obagi’s portfolio with Dr. Obagi’s novel innovations.”
The U.S. launch of Suzan Obagi, M.D.’s line for Obagi is anticipated for mid-year of 2017.
Shares of Valeant closed yesterday at $16.35, down $0.05 or -0.30%. VRX has a 1-year high of $86.50 and a 1-year low of $13.00. The stock’s 50-day moving average is $14.97 and its 200-day moving average is $20.22.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on February 21, Canaccord analyst Neil Maruoka reiterated a Hold rating on VRX, with a price target of $19.00, which implies an upside of 16% from current levels. On the same day, H.C. Wainwright’s Ram Selvaraju reiterated a Hold rating on the stock and has a price target of $23.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Neil Maruoka and Ram Selvaraju have a yearly average loss of 6.1% and 2.7% respectively. Maruoka has a success rate of 38% and is ranked #4278 out of 4494 analysts, while Selvaraju has a success rate of 38% and is ranked #4169.
Overall, 3 research analysts have rated the stock with a Sell rating, 7 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $15.50 which is -5.2% under where the stock closed yesterday.
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.