Jump to content

VRX - Valeant Pharmaceuticals International Inc.


giofranchi
[[Template core/global/global/poll is throwing an error. This theme may be out of date. Run the support tool in the AdminCP to restore the default theme.]]

Recommended Posts

To summarize what valeant had done in the past few months or what has occurred:

1. Ackman is gone so less distractions

2. Rumored EO is more favorable to pharm companies

3. Paulson joined the board and increased his position to 6.3%

4. Continued debt reduction via CF and divestures

5. Steadied ship with new management.

6. Rumors of a debt for equity swap

7. Submissions or approvals of drugs

I added to my position about two months ago in a tax favorable account with most of the above in mind. While valeant has been a volatile and price gouging company in the past, this has been baked into the stock price. While equity dilution via a swap is not favorable for equity, I view it as relatively neutral with the savings from servicing the debt and the apppreciation from the market multiple.

 

Link to comment
Share on other sites

  • 3 months later...
  • Replies 6.1k
  • Created
  • Last Reply

Top Posters In This Topic

  • 2 weeks later...

https://finance.yahoo.com/news/valeant-one-subsidiaries-announce-early-003400142.html

 

VRX will save about $12M/year and push out maturities.  It's a shame they could not redeem all of their 7% 2020 notes however we should see a lot more tender offers over the next year or so...

 

 

http://ir.valeant.com/news-releases/2017/10-02-2017-123606343

 

Smart move by the CFO, staggering maturities of debt and reducing their interest burden If they can redeem all the 7% and a portion of 6.375%.  The price on the secured bonds is for 5.5% interest rate which is still pretty high unfortunately.

Link to comment
Share on other sites

  • 3 weeks later...
  • 2 months later...

Off topic.

 

Thanks Liberty for bringing up the series. I've watched a couple of episodes. Episode 2 "Payday" is also interesting about predatory payday lending. There's a hilarious statement from the lender's wife"

 

I would never buy anything that was seized by the Government and then sold. I just wouldn't. I just don't want to be a part of the process, of the destruction of somebody's life. And I don't care whether whatever they did they were guilty of or not guilty of, I just wouldn't go there. To see them come and take those (his racing cars) for something .... and to know that they can take every penny you have for.... a number in a box (the judgement).... that's all it was... a number in a box.

 

It's hilariously rich to me. The type of people, while things are going well and the scamming is good they're winners, they of course deserve everything because they're smart and tough and the pray should stop complaining because they're stupid and loosers. As soon as the tables turn they instantly go to being bleeding hearts with a sob story.

Link to comment
Share on other sites

  • 3 months later...

http://www.businessinsider.com/r-ex-valeant-philidor-executives-found-guilty-of-kickback-scheme-2018-5

 

Former Valeant and Philidor executives were found guilty on Tuesday of defrauding Valeant through a multimillion-dollar kickback scheme.

 

Gary Tanner, a former senior director at Valeant, and Andrew Davenport, the former head of the now-defunct Philidor, were convicted of fraud and conspiracy charges.

 

Prosecutors claimed that Valeant was the victim of a scheme in which Tanner passed inside information to Davenport to bolster Philidor's business as Valeant's primary pharmacy partner.

Link to comment
Share on other sites

  • 4 weeks later...

The price dropped more than 12% today on news that one of it's pipeline drugs (a lotion to treat plaque psoriasis) was not approved by the FDA 

 

https://finance.yahoo.com/news/valeant-rebound-falters-key-drug-174641785.html

 

It says the denial isn't based on the efficacy of the drug but rather that they need to provide more data on "pharmacokinetics" (according to google, that's the movement of drugs throughout the body, which is odd considering it's a lotion, not a pill).  Seems like a bit of an overraction to a delay for a drug that is not related to efficacy or dangerous side effects. 

 

Someone gave a great bull thesis on this stock at one of the side events at the Fairfax AGM.  And he even suggested watching the Netflix episode to see the basis of the fraud claims.  Basically, 1) the debt is manageable now, 2) they've sold off parts of the business at non-fire sale prices and 3) the parts that are left like Bausch and Lomb and some of the skin care stuff looks like a steady profitable business that Joe Papa can turn around.

 

Is anyone adding to this on the big dip? 

Link to comment
Share on other sites

The price dropped more than 12% today on news that one of it's pipeline drugs (a lotion to treat plaque psoriasis) was not approved by the FDA 

 

https://finance.yahoo.com/news/valeant-rebound-falters-key-drug-174641785.html

 

It says the denial isn't based on the efficacy of the drug but rather that they need to provide more data on "pharmacokinetics" (according to google, that's the movement of drugs throughout the body, which is odd considering it's a lotion, not a pill).  Seems like a bit of an overraction to a delay for a drug that is not related to efficacy or dangerous side effects. 

 

Someone gave a great bull thesis on this stock at one of the side events at the Fairfax AGM.  And he even suggested watching the Netflix episode to see the basis of the fraud claims.  Basically, 1) the debt is manageable now, 2) they've sold off parts of the business at non-fire sale prices and 3) the parts that are left like Bausch and Lomb and some of the skin care stuff looks like a steady profitable business that Joe Papa can turn around.

 

Is anyone adding to this on the big dip?

 

Pharmacokinetics is fundamental data and will take a while to acquire. Seems kind of strange to have this Problem so late in the game, since generally, this data is generated to set the dosage.

 

No position.

Link to comment
Share on other sites

The price dropped more than 12% today on news that one of it's pipeline drugs (a lotion to treat plaque psoriasis) was not approved by the FDA 

 

https://finance.yahoo.com/news/valeant-rebound-falters-key-drug-174641785.html

 

It says the denial isn't based on the efficacy of the drug but rather that they need to provide more data on "pharmacokinetics" (according to google, that's the movement of drugs throughout the body, which is odd considering it's a lotion, not a pill).  Seems like a bit of an overraction to a delay for a drug that is not related to efficacy or dangerous side effects. 

 

Someone gave a great bull thesis on this stock at one of the side events at the Fairfax AGM.  And he even suggested watching the Netflix episode to see the basis of the fraud claims.  Basically, 1) the debt is manageable now, 2) they've sold off parts of the business at non-fire sale prices and 3) the parts that are left like Bausch and Lomb and some of the skin care stuff looks like a steady profitable business that Joe Papa can turn around.

 

Is anyone adding to this on the big dip?

 

Combining two generic drugs into one branded so they can jack up the price but can't even get it approved. Same old Valeant.

Link to comment
Share on other sites

The price dropped more than 12% today on news that one of it's pipeline drugs (a lotion to treat plaque psoriasis) was not approved by the FDA 

 

https://finance.yahoo.com/news/valeant-rebound-falters-key-drug-174641785.html

 

It says the denial isn't based on the efficacy of the drug but rather that they need to provide more data on "pharmacokinetics" (according to google, that's the movement of drugs throughout the body, which is odd considering it's a lotion, not a pill).  Seems like a bit of an overraction to a delay for a drug that is not related to efficacy or dangerous side effects. 

 

Someone gave a great bull thesis on this stock at one of the side events at the Fairfax AGM.  And he even suggested watching the Netflix episode to see the basis of the fraud claims.  Basically, 1) the debt is manageable now, 2) they've sold off parts of the business at non-fire sale prices and 3) the parts that are left like Bausch and Lomb and some of the skin care stuff looks like a steady profitable business that Joe Papa can turn around.

 

Is anyone adding to this on the big dip?

 

Combining two generic drugs into one branded so they can jack up the price but can't even get it approved. Same old Valeant.

 

Didn’t realize that they are trying to market just a combo of generics. That is why pharmacokinetics are so important - the FDA wants to understand, how these drugs interact. Otherwise, Doctors could just prescribe the two generics together (which I suspect occurs already anyways). Looks like VRX R&D department didn’t d their job well.

Link to comment
Share on other sites

The price dropped more than 12% today on news that one of it's pipeline drugs (a lotion to treat plaque psoriasis) was not approved by the FDA 

 

https://finance.yahoo.com/news/valeant-rebound-falters-key-drug-174641785.html

 

It says the denial isn't based on the efficacy of the drug but rather that they need to provide more data on "pharmacokinetics" (according to google, that's the movement of drugs throughout the body, which is odd considering it's a lotion, not a pill).  Seems like a bit of an overraction to a delay for a drug that is not related to efficacy or dangerous side effects. 

 

Someone gave a great bull thesis on this stock at one of the side events at the Fairfax AGM.  And he even suggested watching the Netflix episode to see the basis of the fraud claims.  Basically, 1) the debt is manageable now, 2) they've sold off parts of the business at non-fire sale prices and 3) the parts that are left like Bausch and Lomb and some of the skin care stuff looks like a steady profitable business that Joe Papa can turn around.

 

Is anyone adding to this on the big dip?

 

Combining two generic drugs into one branded so they can jack up the price but can't even get it approved. Same old Valeant.

 

Didn’t realize that they are trying to market just a combo of generics. That is why pharmacokinetics are so important - the FDA wants to understand, how these drugs interact. Otherwise, Doctors could just prescribe the term generics together (which I suspect occurs already anyways). Looks like VRX R&D department didn’t d their job well.

 

VRX was designed not to have a functioning R&D team and they spend less than 4% of sales on R&D. Shouldn't be surprised when they screw up.

Link to comment
Share on other sites

  • 4 months later...
  • 1 month later...
  • 2 months later...

 

Results, guidance look good to me. Business overall is performing well. They tend to be conservative in estimating loe impact.

I added around 23, even though I just paid 18 in Dec 2018. I couldn't resist.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...