Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals had a pretty rough day in the market today, closing the day off at $12.11 per share after a decline of $0.13 per share or 1.06%. However, the declines during the trading session proved to be nothing compared to what would happen at the closing bell. As the session came to a close, news hit that sent the stock spiraling downward out of control. Below, we'll talk about what we're seeing from VRX, why, and what we'll be watching for with regard to the stock ahead.
What We're Seeing From VRX
As mentioned above, Valeant Pharmaceuticals had a rough day in the market today, but the real action is happening in the after-hours. Minutes ago, just after the closing bell, the stock started to drop like a brick thrown from the top of the Empire State Building. At the moment (4:35), VRX is trading at $11.31 per share after a loss of 6.61% thus far in after-hours.
Why The Stock Is Falling
First and foremost, let's give credit where it's due. Our partners at Trade Ideas were the first to inform us of the declines on VRX. As soon as we received the alert, the CNA Finance team went to work to see why the stock was spiraling out of control. It didn't take long to find the cause of the declines. Ultimately, the stock is down as a result of a move made by Bill Ackman.
Following the Philidor Scandal, activist investor Bill Ackman got involved in the stock. Today, he owned 27 million shares of the company. However, in an after-hours report on CNBC, we learned that Ackman plans to exit his position, selling 27 million shares and stepping down from the board of directors. Unfortunately, this likely means that VRX is far from being saved and will soon find itself in bankruptcy.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on VRX. In particular, we're interested in following the company to see what their plans are following Ackman's exit. Nonetheless, we'll continue to follow the story closely and bring you the news as it breaks!
Update 4:55: Things just aren't going well for VRX today. The fall keeps growing larger and larger. Not to mention Ackman isn't the only one dumping the stock. In fact, Ric Dillon, Chairman and Portfolio Manager at Diamond Hill Capital Management fund announced that he would be dumping the stock as well. At the moment, the stock is trading at $11.01 per share after a loss of $1.10 per share or 9.08% thus far, and looks like it will continue falling.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Wikimedia]