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Biotech Roundup: Analysts Bullish on Valeant Pharmaceuticals Intl Inc. (VRX) and Regeneron Pharmaceuticals Inc. (REGN)


Analysts weigh in on Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) as the company tries to defends itself against fraud allegations, and Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) ahead of earnings.

Valeant Pharmaceuticals Intl Inc.

Earlier this week, Valeant held a detailed investor call to defend itself against accounting fraud accusations. In brief, the company’s relationship with Philidor, a pharmaceutical company, has been brought into question as Valeant was listed as Philidor’s only client.

Following the call, Shibani Malhotra from Nomura met J. Michael Pearson, the company’s CEO, to discuss some of her outstanding questions following the call. As a result, Malhotra reiterated a Buy rating on the stock; however, she’s reduced her price target to $220, down from the earlier target of $290.

Malhotra stat

In her report, Malhotra says she is confident that the recent reports accusing the company of fraud are “unfounded.” Based on the “intrinsic value” of the stock, even though the consensus is not in its favor, Malhotra says the stock is highly “undervalued.”

Malhotra highlighted key takeaways from the meeting, explaining that Valeant’s priority is to repurchase debt from the open market. Also, the company’s senior management will be glad to buy the company’s shares at current market prices. Furthermore, in spite of fraud allegations, management is not shying away from Philidor...