Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals has had a rough time in the market, there’s no denying that. However, at the moment, I believe it’s time to buy. Today, we’ll talk about why the company has been struggling, what’s changed since, and why it’s time to buy VRX. So, let’s get right to it…
Why VRX Has Had Such A Rough Time
As mentioned above, Valeant Pharmaceuticals has had an incredibly hard time in the market as of late, and for good reason. The company had a relationship with a pharmacy known as Philidor. However, the relationship simply didn’t add up. Soon, Citron published a report surrounding VRX that explained the relationship between Valeant and Philidor, and it definitely wasn’t a good one. In fact, Citron called VRX the Enron of the pharmaceutical industry. This led to a fire storm that VRX simply couldn’t avoid.
You see, over time, it was pointed out that Valeant was using their relationship with Philidor to make their company and stock look better than it actually was. The scandal showed that millions of dollars that were on the books weren’t actually made, and that was a big issue for VRX and its investors. So naturally, following the news. VRX saw massive declines on the value of its stock.
What We’ve Seen Since
Any time bad news surrounds a publicly-traded company, that company needs to figure out a way to change the opinions of investors, and VRX has definitely been working on doing so. Here’s what we’ve seen from the company since the Citron report:
- Walgreens – Because Philidor was Valeant’s largest customer, they had to come up with a way to make up for the sales they lost when their relationship with Philidor was terminated. To do so, VRX started by looking to Walgreens. At this point, the company has signed a contract with Walgreens and has started to make up for its loss in sales volume.
- Changes To The Board – Since the Philidor scandal, Valeant has also made a couple of changes to its Board of Directors. The Board now has new members that will help to steer the company in the right direction.
- CEO Changes – Finally, the company has announced that its CEO would be stepping down. While he is remaining in the role until a new CEO is found, the company is looking for a new leader.
Why Now Is The Time To Buy VRX
Sure VRX has come onto some very hard times as of late. However, while the company may be down, it is not out. The truth is that Valeant has a long list of incredible products that will help to keep the company in the profitable space. We’re seeing improvements in sales numbers and, with the new management coming on board, I believe we’re going to see VRX in a better spot than it has ever been before. All in all, things seem to be going great for the company.
What Do You Think?
Where do you think VRX is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]