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Valeant Deserves More

Summary

2016 promises to be a year to remember.

I see the light at the end of the tunnel.

Comparative analysis warrants a revaluation.

The start of 2016 will surely be remembered at Valeant (NYSE:VRX). Its CEO caught pneumonia and was replaced by an interim CEO. An investigation into their use of Philidor was finalized leading to terminations, a delayed 10-K filing causing debt default notices and restatements. Bill Ackman's Pershing Square got two seats to Valeant's BOD. With the return of the sick CEO, arguably too soon, guidance was reduced during a disastrous Q1 earnings call causing the stock price to plummet.

The CEO decided to leave and a new CEO from Perrigo (NYSE:PRGO) brought in. Guidance was reduced again when suddenly the new channel deal to replace Philidor, Walgreens (NASDAQ:WBA), wasn't working as intended. Board member turnover ensued. A new Controller was hired. One drug was approved, one recommended for approval and one approval delayed caused by concerns related to a B&L manufacturing plant inspection.

I see light at the end of the tunnel though. The company is executing and delivering on their promises. Default has been averted. The cash flow is still strong. New management is in place. Management is executing against its Stabilization Plan (slide 16). New drug...


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