Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals was off to a relatively normal day in the market. While the stock was in the red, it wasn’t down by too much. That is, until minutes ago when the stock started to spike downward. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to VRX ahead.
What We’re Seeing From VRX
As mentioned above, Valeant Pharmaceuticals wasn’t having the best of days early on in the market. However, while the stock was in the red, it wasn’t anything big enough to write home about. Nonetheless, that all changed minutes ago as the stock started spiraling downward in a big way. At the moment (10:10), VRX is trading at $16.10 per share after a loss of $1.06 per share. It’s hard to imagine that it was trading well over $100 per share just over a year ago.
Why The Stock Is Falling Apart
As usual, when the CNA Finance team noticed that VRX was taking a dive, we started to research in hopes of finding the reason for the fall. It didn’t take long to dig something up in this case. The declines are the result of news surrounding a previously disclosed asset sale.
Recently, Valeant Pharmaceuticals investors learned that the company was in talks with Takeda to sell Salix for $10 billion. However, news is breaking at the moment that these talks are falling apart. Of course, this is a major hit to VRX, a company that is in desperate need of the funding this deal would provide if it went through.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on VRX to see what the plan B is. At the end of the day, the sale of Salix was a big deal. Nonetheless, we’ll be watching the news closely and bringing it to you as it breaks!
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