Valeant Pharmaceuticals Intl Inc (VRX) Stock Up Big After Deal Reached With Walgreens


Valeant Pharmaceuticals Intl Inc (NYSE:VRX) shares are trading up over 11% in pre-market trading this morning, after the company just announced a huge 20-year fulfillment deal with Walgreens. Additionally the company also announced plans to use this same distribution model for other pharmacies as well.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Walgreens agreed to offer the company’s ophthalmology and dermatology products at lower prices (10% less) across over 8,000 Walgreens stores in the United States, as well as additional indepentent pharmacies. The agreement will take effect in the first quarter of 2016.

Some of the Valeant Pharmaceuticals Intl Inc (NYSE:VRX) products that will be covered in this agreement include Acanya® Gel, Jublia®, Luzu™, Retin-A Micro® Gel 0.08%, and more.

“We have listened to what the marketplace is saying and we’ve taken positive steps to respond. We are pleased to announce both a strategic fulfillment agreement with Walgreens, as well as a new agreement to offer innovator products at generic prices, which is good for consumers, good for physicians and good for the healthcare system,” said J. Michael Pearson, chairman and chief executive officer of Valeant. “Our goal is to create a system that allows prescription medications to be dispensed and insurance claims adjudicated in an efficient manner while allowing physicians to focus their efforts on what matters most: patient care.”

The stock closed at $94.15 during the last trading session. It is down 57.78% since May 12, 2015 and is downtrending. It has underperformed the S&P500 by 54.10%.

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 94.87% above today’s ($94.15) 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 2015Q1. The ratio dropped, as 59 funds sold all their Valeant Pharmaceuticals Intl Inc shares they owned while 216 reduced their positions. 82 funds bought stakes while 173 increased their total positions. Institutions now own 287.23 million shares which is 0.78% more than the previous share count of 285.01 million in 2015Q1.

Brave Warrior Advisors Llc holds 36.57% of its total portfolio in Valeant Pharmaceuticals Intl Inc, equating to 5.70 million shares. Ruane Cunniff & Goldfarb Inc owns 33.88 million shares representing 35.9% of their total US portfolio. Moreover, Levasseur Capital Partners Llc has 34.97% of their total portfolio invested in the company, equating to 188,804 shares. The New York-based Pershing Square Capital Management L.P. has a total of 29.95% of their portfolio invested in the stock. Farley Capital Ii L.P., a New York-based fund reported 141,020 shares owned.

Since May 6, 2015, the stock had 1 insider buy, and 0 insider sales for a total of $272,395 in net activity. Farmer Ronald Harold bought 1,500 shares worth $272,395. Ubben Jeffrey W sold 4.20 million shares worth $925.01 million. Mirovsky Pavel sold 38,000 shares worth $9.04M. Chai-Onn Robert Roswell sold 90,938 shares worth $20.24M.

Valeant Pharmaceuticals International, Inc. is a specialty pharmaceutical and medical device company. The company has a market cap of $32.11 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 53.29 P/E ratio. The Firm operates through two divisions: developed markets and emerging markets.