Valeant Pharmaceuticals ($VRX) Stock | CEO On Medical Leave With Pneumonia

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Valeant Pharmaceuticals International (NYSE: VRX)

 

Valeant Pharmaceuticals News

Valeant Pharmaceuticals is taking a beating to start the week off, as shares are down over 7% premarket on news that the chief executive officer Michael Pearson is on medical leave with a severe case of pneumonia. To help cover Pearson’s absence, the company has formed a committee to act as CEO that includes the Executive Vice President Robert Chai-Onn, company chairman Dr. Ari Kellen and the chief financial officer Robert Rosiello. Investors are not taking this news lightly and this ticker should be on your radar as increased volume and volatility should follow.

 

Director Robert Ingram Comments

“Our thoughts are with Mike and his family,” Ingram stated in prepared remarks Monday. “Out of respect, we will be honoring his family’s request for privacy and will not be commenting further on his condition at this time.” (MarketWatch)

 

VRX Technical

VRX Chart

VRX shares sold off roughly 8 points or just over 7% this morning in the premarket session as news came out. Lows were hit in the premarket at $105.50 before opening the day at $108.80 and made an attempt at higher prices but were rejected around the $109.50 price range and began to trend lower for the rest of the morning. VRX closed the day down 10% at $102.14.

 

Looking at the daily chart you can see that VRX had started the year off great making a run all the way up to $263.81 before selling off over the next couple months to lows of $69.33 in November. A death cross appeared in October and since then shares have been trending lower following the 9ema and 20ema. Support should be met at the $100 and $90 price levels while resistance will come in at around the $120 and $150 levels. VRX is a particularly volatile name so if you are looking to take a trade remember to keep your risk/reward ratios in mind with a hard stop in place. Currently analysts have an average price target of $221.65.

 

Company Profile

Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets. The Developed Markets segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products, and medical device products, as well as alliance and contract service revenues, in the areas of eye health, dermatology and podiatry, aesthetics and dentistry, (ii) sales in the U.S. of pharmaceutical products indicated for the treatment of neurological and other diseases, as well as alliance revenue from the licensing of various products it developed or acquired, and (iii) pharmaceutical products, OTC products, and medical device products sold in Canada, Australia, New Zealand, Western Europe and Japan. The Emerging Markets segment consists of branded generic pharmaceutical products and pharmaceuticals, OTC products, and medical device products. Products are sold primarily in Central and Eastern Europe (primarily Poland and Russia), Asia, Latin America (Mexico, Brazil, and Argentina and exports out of Mexico to other Latin American markets), Africa and the Middle East. Valeant Pharmaceuticals was founded on March 29, 1994 and is headquartered in Laval, Canada. (MarketWatch)

 

 

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