Valeant said the October split from specialty pharmaceutical partner Philidor Rx Services caused a big short-term disruption to its business that will reduce its expectations for the fourth quarter and 2015 as a whole.
Advertisement
Rare Christmas full moon shines down
The forecast calls for clouds and overcast skies but with a little Christmas magic, the rare Christmas moon may be visible. While the moon will look full when it rises at sunset on Christmas Eve, it won’t reach its peak until 6:11 a.m.
Shares of Valeant, which is also facing multiple investigations over antitrust violations and drug pricing arrangements, were initially down during pre-market futures trading in NY, but rose up 0.8 percent at $110.50. We believe that this agreement will go a long way to addressing concerns about the disruption to Valeant’s dermatology business by expanding convenient and affordable access to Valeant products, and will help restore credibility by the company partnering with the largest and best-managed pharmacy chain.
Late-night quake rattles Pakistani capital, Afghanistan
Meanwhile the police in the Indian capital tweeted to say there have not been any calls reporting any damage or casualty as yet. In the meantime reports suggest that the quake was of 6.2 magnitude with its epicenter at the Afghanistan-Tajikistan border.
Morgan Stanley views the announcement to work with the leading United States pharmacy as a positive step for Valeant, although its value proposition and economics to the healthcare system remain unclear. The deal also covers over-the-counter products made by Valeant Pharmaceuticals International Inc.
A Seattle Chipotle closes after repeated food safety violations
The restaurant was shut down on Thursday after repeated food safety violations including temperature control problems. How many holiday parties had people eating together is a question that we do not have an answer for immediately.
Valeant was a highflier through its acquisition of other drugs as well as drug companies and then raising the prices of drugs, instead of the traditional industry growth method of discovering new treatments through both research & development.
Valeant Chief Executive Michael Pearson told CNBC on Tuesday that the company’s agreement with Walgreens “more than replaces” its deal with Philidor.
Separately, federal prosecutors in MA and NY have subpoenaed information about Valeant’s drug-pricing and distribution policies.
“Certainly it influenced our decision to take this move with Walgreens but it’s not the main driver”, he said in an interview Tuesday. Analysts expect that Valeant Pharmaceuticals Intl will post $2.89 earnings per share for the current fiscal year.
Valeant has seen its share price cut in half since October.
Valeant forecast in a press release that another closely watched metric, cash earnings, would be $6.9 billion to $7.1 billion in 2016.
Democratic Congressman Elijah Cummings, a ranking member of the house Committee on Oversight and Government Reform, and Senator Bernie Sanders, a ranking member of the of the Subcommittee on Primary Health and Aging, Senate Committee on Health, Education, Labor and Pensions, are investigating the recent abrupt increases in drug prices.
For full year 2015, Valeant now expects adjusted EPS in the range of $10.23 -$10.33 compared to previous outlook of $11.67 – $11.87. JPMorgan Chase & Co. dropped their price objective on Valeant Pharmaceuticals Intl from $265.00 to $225.00 and set an overweight rating for the company in a research note on Wednesday, November 11th.
Advertisement
Shares of the pharmaceutical giant are down by more than 64% since its high in August. “We will have double-digit organic growth, not just next year, but the year after that and the year after”, Pearson predicted.
