Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals hasn’t been having the best of times in the market for a long time now. However, today, it seems as though losses have amplified. The stock started the day off in the red, and throughout the session thus far, we’ve seen a continuation of losses. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to VRX ahead.
What We’re Seeing From VRX
As mentioned above, Valeant Pharmaceuticals isn’t off to a great start to the trading week today. Unfortunately, with the opening bell, the stock quickly found itself in the red. Since the bell range, we’ve watched as the stock has only continued to fall. At the moment (10:53), VRX is trading at $14.99 per share after a loss of $0.47 per share (3.04%) thus far today.
Why The Stock Is Falling
Early on, we got a notification from Trade Ideas that VRX wasn’t off to a great start. As soon as we got it, we started to do some work to see what was causing the gains. While declines are expected given the company’s recent history, 3% in the first hour and a half is a bit much. Nonetheless, we found the cause.
Ultimately, the losses are being caused by FDA news. Unfortunately for Valeant Pharmaceuticals, the FDA just announced approval of a generic version of Nitropress. Of course, this is incredibly bad news for the company, as generic competition will likely eat away at their sales. As a result, investors are reacting, pushing the price of the stock downward.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team intends to keep a very close eye on VRX. While we will be watching how the Nitropress generic weighs on the company, that’s not the only thing we’ll be watching. Ultimately, VRX has been in the midst of a scandal, and we are still seeing the repercussions of that. Nonetheless, we’ll keep a close eye on the news surrounding the stock and bring you updates as they break!
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