As if shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) haven’t been beaten down enough this year, today comes some more bad news for the Quebec-based multinational specialty drug company. Company CEO, Michael Pearson is now taking a medical leave due to what is being referred to as “a severe case of pneumonia“.
The stock is responding negatively to this news, as the company will at least temporarily be put in the hands of other Valeant Pharmaceuticals Intl Inc (NYSE:VRX) executives. This all comes as Valeant Pharmaceuticals has just began winning back some of their investors’ confidence, after what has been a dreadful year for the company.
The overall condition of Pearson is not known, but is it known that he has been transferred to a second hospital for further treatment.
The stock is down 5.95% or $6.79 following the news, hitting $107.32 per share. Approximately 788,412 shares traded hands. VRX shares have declined 51.96% since May 22, 2015 and are currently downtrending. It has underperformed the S&P500 by 49.70%.
From a total of 18 analysts covering Valeant Pharmaceuticals Intl (NYSE:VRX) stock, 13 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 72% of the ratings are positive. The highest target price is $310 while the lowest target price is $98.0. The mean of all analyst targets is $183.47 which is 70.96% above today’s ($107.32) stock price. Valeant Pharmaceuticals Intl was the topic of 45 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 14 with a “Outperform” rating. Jefferies maintained shares with a”Buy” rating and a $172 target share price in their report from a November 2. Mizuho maintained VRX stock in a recent report from November 20 with a “Buy” rating. Bank of America maintained the rating on September 30. Bank of America has a “Buy” rating and a $290 price target on shares. Finally, JP Morgan maintained the stock with a “Overweight” rating in a report they issued on a November 11.
The institutional sentiment decreased to 0.83 in Q2 2015. It’s down 0.10, from 0.93 in 2015Q2. The ratio is negative, as 105 funds sold all their Valeant Pharmaceuticals Intl Inc shares they owned while 198 reduced their positions. 63 funds bought stakes while 188 increased their total positions. Institutions now own 292.15 million shares which is 1.71% more than the previous share count of 287.23 million in 2015Q2.
Brave Warrior Advisors Llc holds 31.62% of its total portfolio in Valeant Pharmaceuticals Intl Inc, equating to 5.58 million shares. Ruane Cunniff & Goldfarb Inc owns 33.92 million shares representing 31.06% of their total US portfolio. Moreover, Levasseur Capital Partners Llc has 29.76% of their total portfolio invested in the company, equating to 162,394 shares. The New York-based Farley Capital Ii L.P. has a total of 27.18% of their portfolio invested in the stock. Pershing Square Capital Management L.P., a New York-based fund reported 19.47 million shares owned.
Since May 6, 2015, the stock had 1 buying transaction, and 0 selling transactions for a total of $272,395 in net activity. Farmer Ronald Harold bought 1,500 shares worth $272,395. Ubben Jeffrey W sold 4.20 million shares worth $925.01M. Mirovsky Pavel sold 38,000 shares worth $9.04M. Chai-Onn Robert Roswell sold 90,938 shares worth $20.24 million.
Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The company has a market cap of $36.61 billion. The Firm is engaged in developing, manufacturing, and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices), which are marketed directly or indirectly in over 100 countries. It has 60.75 P/E ratio. The Firm operates through two divisions: developed markets and emerging markets.