Valeant shares fall as Ackman exit highlights company's challenges

  • Valeant shares fall as Ackman exit highlights company's challenges

Valeant shares fall as Ackman exit highlights company's challenges

Bill Ackman's Pershing Square Capital Management has finally admitted defeat, taking a $2.8 billion loss and liquidating its position in VRX stock. His 27.2 million shares reportedly went for about $11 a pop-about $300 million all told-and Valeant's stock headed south by as much as 9% on the news.

Valeant Pharmaceuticals' shares were down again Tuesday (10.3% to $10.86).

While looking at the Stock's Performance, Valeant Pharmaceuticals International, Inc. now shows a Weekly Performance of -6.28%, where Monthly Performance is -16.62%, Quarterly performance is -18.83%, 6 Months performance is -59.15% and yearly performance percentage is -81.5%.

The 18 analysts offering 12-month price forecasts for Valeant Pharmaceuticals have a median target of 18.25, with a high estimate of 55.00 and a low estimate of 8.00.

In Toronto, Valeant shares (TSX:VRX) closed on Monday at C$16.23 prior to Pershing's disclosure after the Toronto and NY stock markets closed.

Valeant Pharmaceuticals International, Inc. has 1 year price target of $19.81.

The investment is only between 1.5% and 3% of the entire funds of Pershing Square and required a large amount of resources and time that was disproportionate and therefore liquidated, said a statement released by Pershing.

"We don't think that Bill Ackman's withdrawal or capitulation here indicates that there's some major shoe to drop that other investors don't know about", said Ram Selvaraju, senior healthcare analyst at Rodman & Renshaw, in an interview with BNN. (NYSE:VRX) belonging to the Medical sector has surged 5.79% and closed its last trading session at $12.24. On average, equities analysts anticipate that Valeant Pharmaceuticals Intl will post $3.89 EPS for the current year. The company made a handful of key bolt-on acquisitions, buying Coria Laboratories, Australia's DermaTech, Dow Pharmaceutical Sciences, Mexico's Tecnofarma and Aton Pharmaceuticals.

But the company had a slew of misses as well - losing a bid for Cephalon in 2011, failing to close a $13 billion merger with Actavis in 2013 and ultimately losing out on Allergan in 2014.

Valeant, which technically is based in Canada but operates from headquarters in Bridgewater, New Jersey, ousted Michael Pearson, the CEO responsible for the price-hiking strategy, early previous year.

Valeant cuts ties with mail-order pharmacy company Philidor, after a report from Citron Research accused the company of "fraud."

Over the period of 6 months, Insider Purchases show a total of 6 transaction in which 30775 shares were traded. The business's revenue for the quarter was down 12.9% on a year-over-year basis. Kistler Tiffany Companies LLC now owns 5,567 shares of the specialty pharmaceutical company's stock valued at $137,000 after buying an additional 2,719 shares during the last quarter.

On Dec 16 Valeant Pharmaceuticals International, Inc. Valeant is now trying to refinance its debt, which seems to have spooked investors even more.