Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals was off to a relatively normal start to the day today. However, minutes ago, the CNA Finance team noticed a massive spike downward in the value of the stock, and we believe we found the reason. Below, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see ahead.
What We’re Seeing From VRX
As mentioned above, Valeant Pharmaceuticals was having a relatively normal day in the market. While the stock was in the red, it wasn’t down by much. That is, until minutes ago, when the stock started to spike downward. At the moment (3:29), VRX stock is trading at $19.56 per share after a loss of $0.79 per share (3.88%) thus far today.
Why VRX Is Spiking Downward
As soon as we noticed the declines in the value of the stock, the CNA Finance team went digging, and we believe we’ve found the cause. Essentially, the stock is spiking downward because of rumors on social media that the former CEO and former CFO of the company are involved in a criminal probe.
According to the rumors, the former executives of the company may be charged criminally for their actions in the Philidor scandal. This scandal has long been weighing on the stock, and, yet again, VRX is falling as a result of the news.
What To Watch Ahead
If you follow Valeant Pharmaceuticals, you know that the scandal is the big story. Unfortunately, this has weighed on VRX for some time and is likely to continue weighing on the stock moving forward. Nonetheless, if the company can make it through the onslaught of legal consequences, the light is bright at the end of the tunnel.
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[Image Courtesy of Wikimedia]