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Actionable news in VRX: VALEANT PHARMACEUTICALS INTERNATIONAL,

Valeant Isn't Out of Trouble Yet, Debt Remains Difficult to Curb

Shares of Valeant Pharmaceuticals Intl Inc. (VRX) were spiking Tuesday after the Laval, Quebec firm unveiled second-quarter numbers.

Though the company had better than expected sales and it has reduced its $30 billion debt pile, murmors that the company is out of the clear seem to be overblown.

"While the stock has been bolstered recently by speculation of a potential debt-for-equity swap, we believe there is considerable uncertainty on what this could look like or whether a transaction could have a meaningful impact on Valeant's leverage," wrote Canaccord's Neil Maruoka in a note Tuesday.

Maruoka acknowledged that the company saw strong earnings in Bausch & Lomb, "we are not necessarily convinced that we are seeing significant operating momentum for the company."

Shares of Valeant rose 7.6% to $16.54 in morning trading on Tuesday, Aug. 8 as the company reported adjusted earnings per share of $1.05...


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