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Valeant Pharmaceuticals Gap Up Reversal On Huge Debt Reduction News

Posted by on May 9, 2017 7:15 AM
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Categories: Stocks

May 09, 2017: Valeant Pharmaceuticals cleared out a lot of short sellers today after the CFO said that the company is able to meet all of its debt obligations in earnings call comments. Debt was reduced by a whopping $1.3 billion in the quarter.

Valeant Pharmaceuticals reports Q1 EPS of +$1.79 (GAAP) versus the -$1.08 estimate YoY. Revenue missed coming in at $2.11 billion versus the $2.16 billion estimate.

The CEO Joseph C. Papa said, “Our first quarter performance demonstrates that we are delivering on our commitments. We met our internal expectations, and we are continuing to make progress on our key initiatives, focus on the turnaround of our core businesses and improve internal operating efficiencies. Our divestiture efforts and cash flow generation have led to a $3.6 billion reduction in total debt to date, since the end of the first quarter of 2016, and our successful debt refinancing provides us with a more comfortable maturity profile.”

May 05, 2017: FDA approves Valeant Pharmaceuticals Wellbutrin 150mg and 300mg tablets. Aplenzin was approved in three strengths. They had 1 strength approved for 100mg so this new approval adds 150mg and 300mg for a total of 3 strengths now.

February 28, 2017: Valeant Pharmaceuticals reports Q4 EPS of $1.26 versus the $1.24 estimate. Revenue also beat coming in at $2.4 billion versus the $2.35 billion estimate.

CEO Joseph C. Papa said, “Over the past few months, our teams worked to stabilize and strengthen our corebusinesses, resolve legacy issues, improve operational processes, launch new products, and improve the balance sheet and capital structure. We paid all 2017 amortizations and reduced debt by $519M in Q4. We agreed to divest a number of assets, including several skincare brands, our Dendreon business and smaller international interests. The U.S. Food and Drug Administration (FDA) approved our new psoriasis treatment, SILIQ™, and we resubmitted our glaucoma treatment, latanoprostene bunod in February 2017.”

February 15, 2017: Valeant Pharmaceuticals gets FDA approval for Siliq (brodalumab) to treat adults with moderate-to-severe plaque psoriasis. Siliq is intended for patients who are candidates for systemic therapy (treatment using substances that travel through the bloodstream, after being taken by mouth or injected) or phototherapy (ultraviolet light treatment) and have failed to respond, or have stopped responding to other systemic therapies.

Suicidal ideation and behavior, including completed suicides, have occurred in patients treated with Siliq during clinical trials. Siliq users with a history of suicidality or depression had an increased incidence of suicidal ideation and behavior compared to users without this history. A causal association between treatment with Siliq and increased risk of suicidal ideation and behavior has not been established.

The most common adverse reactions reported with the use of Siliq include joint pain (arthralgia), headache, fatigue, diarrhea, throat pain (oropharyngeal pain), nausea, muscle pain (myalgia), injection site reactions, influenza, low white blood cell count (neutropenia) and fungal (tinea) infections.

Siliq is marketed by Bridgewater, New Jersey-based Valeant Pharmaceuticals.

FDA link: http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm541981.htm

January 10, 2017: Valeant Pharmaceuticals announced positive results from a second confirmatory pivotal Phase 3, multicenter double-blind, randomized, vehicle-controlled clinical study to assess the safety and efficacy of IDP-118 (halobetasol propionate and tazarotene) lotion in the treatment of plaque psoriasis.

Within the Phase 3 study of 203 adult subjects with moderate to severe psoriasis, IDP-118 showed statistical significance (p January 9, 2017: Valeant Pharmaceuticals International said to be close to deal to sell Dendreon cancer business to China conglomerate Sanpower for about $750 million according to reports in the mainstream financial press.

January 3, 2017: Valeant Pharmaceuticals has formed a candle over candle reversal as bottom feeders dip their toes into the stock on takeover rumors that are circulating. Valeant Pharmaceuticals trades at a forward P/E of 2.9 in response to their unfavorable practice of buying old drugs and then hiking up the price to insane levels to maximize profit.

Valeant Pharmaceuticals market cap is just over $5 billion, and they’ll probably do about $10 billion in sales for 2016, so that’s a substantial discount for a company looking to takeover Valeant Pharmaceuticals.

The rumor is that Takeda may have resumed M&A talks with Valeant according to a report in the Spanish press. The report suggests that Takeda has secured financing so that it can resume talks. Source: https://intereconomia.com/tendencias/salud/takeda-logra-la-financiacion-negocia-valeant-20161230-1604/

Some believe that this is a fake news story and thus fake rumor being spread about Takeda and Valeant Pharmaceuticals and you can read that opinion here: http://seekingalpha.com/article/4033764-fake-news-valeant-may-drop-tuesday

Valeant Pharmaceuticals Stock Chart

Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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