Valeant Pharmaceuticals International, Inc. (NYSE: VRX)
Valeant Pharmaceuticals International, Inc. (VRX), a pharmaceutical company yesterday announced new fulfillment agreements with Walgreens. Valeant also announced it plans to extend its distribution model to additional independent retail pharmacies. In association with the fulfillment agreements, Valeant announced it will reduce prices by 10% for all dermatological and ophthalmological products. Additionally Valeant announced it will also distribute certain branded products at generic prices for an expected average savings of 50% for consumers.
Valeant Pharmaceuticals International, Inc. CEO Comments
“We have listened to what the marketplace is saying and we’ve taken positive steps to respond. We are pleased to announce both a strategic fulfillment agreement with Walgreens, as well as a new agreement to offer innovator products at generic prices, which is good for consumers, good for physicians and good for the healthcare system,” said J. Michael Pearson, chairman and chief executive officer of Valeant. “Our goal is to create a system that allows prescription medications to be dispensed and insurance claims adjudicated in an efficient manner while allowing physicians to focus their efforts on what matters most: patient care.” PR Newswire
VRX Technical Analysis
VRX gapped up in price yesterday to $107.50, up from the prior day’s close of $94.14, which is a 14% increase on the favorable news. Taking a look at the daily chart, we can see the last time VRX traded above this price level was on October 9th, when it traded at $111.50. Taking a further look back on the daily chart, we can see that VRX has been on an overall decline dating back to September 18th when it traded at $242.14. However, more recently, VRX has been rebounding off of its 52 week low price of $69.33 reached on November 18th. I would be looking to see if VRX can test the $110 price level with this gap up. VRX has a float of 300.51 million shares and is trading below the normal daily trading volume. VRX did reach pre market highs $109.75, but gave back $2.25 at the open, or equivalent to 2%. For trading purposes, my entry point would have been $107.75 looking for a run to $110. My stop loss would have been $107.50, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. The company offers Solodyn to treat red and pus-filled pimples of acne in patients, as well as Ziana, Acanya, Atralin, Retin- A Micro, and ONEXTON gel; Wellbutrin XL for major depressive disorder in adults; Jublia for onychomycosis of the toenails; Xenazine for chorea; Targretin for Cutaneous T-Cell Lymphoma; Arestin, a subgingival sustained-release antibiotic; and PROVENGE for the treatment of prostate cancer. It also provides Zovirax, an antiviral for recurrent herpes labialis and initial genital herpes; Syprine to treat patients with Wilson’s disease; Elidel to treat atopic dermatitis; Prolensa for inflammation and pain following cataract surgery; Duromine, a weight loss drug; and Lotemax gel for post-operative inflammation and pain. In addition, the company offers PreserVision, an antioxidant eye vitamin and mineral supplement; CeraVe to rebuild and repair the skin barrier; ReNu Multiplus to lubricate and rewet soft contact lenses; Biotrue for healthy contact lens wear; Ocuvite, a lutein eye vitamin and mineral supplement; Boston, a cleansing solution for gas permeable contact lenses; Artelac to treat dry eyes; AntiGrippin for acute respiratory and respiratory viral diseases, and influenza; and Bedoyecta, a vitamin B complex product. Further, it provides SofLens daily disposable contact lenses; PureVision, a contact lens; various ophthalmic surgical products; Biotrue ONEday lens; medical device systems for aesthetic applications; and Bausch + Lomb Ultra, a contact lens. Additionally, the company offers Tobramycin and Dexamethasone ophthalmic suspension for steroid responsive inflammatory ocular conditions; Cardizem CD to treat hypertension and angina; and Latanoprost for the treatment of glaucoma. Valeant Pharmaceuticals International, Inc. was founded in 1983 and is headquartered in Laval, Canada. Yahoo Finance
