While Valeant Pharmaceuticals’ (NYSE:VRX) CEO, Michael Pearson remains hospitalized with severe pneumonia, the company today announced that they have appointed Howard Schiller as the interim CEO until Pearson is able to return to the company. While, the company has not stated when this may be, nor have they given a major update on Pearson’s health, we do know that Pearson has been transferred to a new hospital where he can receive more sophisticated treatment.
Howard Schiller was the CFO of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) prior to stepping down last year and had worked as a Goldman Sachs banker in the past. Since his departure as CFO, Schiller has remained active with Valeant as a board member and certainly has a clear understanding of the way the company fuctions. Schiller will be replacing a three-person committee which took Pearson’s place after his hospotalization.
The stock is currently trading higher by 3.04% or $3.07 following the positive news, hitting $103.93 per share at the time of us publishing this article. About 7.68 million shares traded hands. VRX has declined 57.62% since June 2, 2015 and is downtrending. It has underperformed the S&P500 by 52.93%.
From a total of 18 analysts covering Valeant Pharmaceuticals Intl (NYSE:VRX) stock, 12 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 67% 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 $184.59 which is 77.61% above today’s ($103.93) stock price. Valeant Pharmaceuticals Intl was the topic of 46 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Mizuho downgraded shares on December 17 to a “Neutral” rating. Jefferies maintained shares with a”Buy” rating and a $172 target share price in their report from a November 2. IBC reinitiated VRX stock in a recent report from November 30 with a “Sector Perform” 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 insider purchase, and 0 sales for a total of $272,395 in net activity. Farmer Ronald Harold bought 1,500 shares worth $272,395. Ubben Jeffrey W sold 4.20M shares worth $925.01 million. 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 $34.55 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 58.83 P/E ratio. The Firm operates through two divisions: developed markets and emerging markets.