Analysts weigh in on drug makers Valeant Pharmaceuticals Intl Inc (NYSE:
Valeant Pharmaceuticals Intl Inc
Following an investor presentation led by Valeant’s new CEO, Papa, Mizuho analyst
At the meeting, Papa noted that Valeant’s main offerings in dermatology, GI, and ophthalmology remain strong and that Valeant’s pipeline remains robust. Papa plans to expand Xifaxan’s indication to a broader population, which Koffler views as a “generally futile” initiative. Furthermore, Papa intends to “strengthen the company’s financial and managed care functions,” as well as “add more transparency around individual business units.” He aims to repay Valeant’s $1.6 billion debt this year.
Koffler explains that despite Papa’s grand plans, none of the updates are “really new,” leaving Valeant in an “extremely challenging predicament.” The analyst continues, “What is clear is that there are a number of divestitures ahead for the company that should lead to a lower top line in 2017.”
Despite these updates, Koffler reiterates an Underperform rating on Valeant with an $18 price target, marking a 33% downside from current levels.