Valeant Pharmaceuticals (NYSE:VRX) is selling its assets to L’Oreal and Dendreon $2.12 billion to ease debt load

According to latest reports, Laval, Quebec-based Valeant Pharmaceuticals Intl (NYSE:VRX) is set to sell its Dendreon cancer business and three skincare brands for around $2.12 billion as the distressed Canadian drug-maker looks to cut down its above $30 billion debt.

Valeant Pharmaceuticals Intl (NYSE:VRX) U.S.-listed shares surged 15% to $17.65 in premarket trading on Tuesday.

Valeant Pharmaceuticals International is aiming to recoup investors poise after its stock plunged nearly 90% in the past year over leaks that it secretly operated with a specialty pharmacy to raise sales of its medicines.

Valeant is the subject of a number of recent inquiries related to specialty pharmacy, comprising by congressional panels and the U.S. Securities and Commission.

Reports said that French cosmetics group L’Oreal is buying CeraVe, AcneFree and Ambi from Valeant for almost $1.3 billion in cash. Meanwhile Valeant also announced to sell its Dendreon unit to China’s Sanpower Group Co Ltd for reported $819.9 million. In 2015 Valeant bought bankrupt Dendreon for about $300 million.

“With this sale, we are better aligning our product portfolio with Valeant’s new operating strategy by exiting the urological oncology business, which is one of our non-core assets,” Valeant Chief Executive Joseph Papa said in a statement on Monday.

The agreement could be the first of a series of divestitures for Valeant Pharmaceuticals Intl (VRX), whose growth was driven by takeover’s spree that left it burdened with a huge stack of debt.

Furthermore L’Oreal paid nearly eight times the brand’s combined annual revenue of $168 million as it swells into one of the fastest growing areas of the beauty industry.

Noteworthy Analyst Evaluations of Stocks: Hertz Global Holdings, Inc. (NYSE:HTZ), Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

Hertz Global Holdings, Inc. (NYSE:HTZ) made a -22.50% move from the market’s previous close, putting the price on the $27.70 per share as of 11/08/2016. The total volume of shares traded was above their three months average volume of 1,280,000 shares. The firm maintains a P/E ratio of 9.03 in 12 months. Hertz Global Holdings, Inc. consensus analyst price target has now moved to $61.38. On a given day, the intraday low was $17.20 . That means the share price went down -47.87% from its 52-week low and trades down -12.62% versus the highest price the stock has traded at during the previous year. It shifted down -37.48% versus its 200 day moving average. The current price dropped -32.14% from the average market prices over a 50-day period.

Hertz Global Holdings, Inc. (NYSE:HTZ) Detailed Analyst Recommendation

There are a handful of analysts covering the stock. Of them, 4 have a “buy”, 0 suggested “sell”, 4 said “hold” and 0 called “underperform” rating for the stock, according to Thomson Reuters data. 2 recommends the stock is “outperforming”. The company has an Average Rating of 2.00 based on analysts tracked by Thomson Reuters.

On 11/08/2016, Valeant Pharmaceuticals International, Inc. (NYSE:VRX) ended trading lower at $14.98 with -21.69% . The firm exchanged hands at a volume of 96,075,999 whereas, the average volume was 22.82M shares. In the past 52 weeks, the share price moved between $17.75 and $119.87. The market cap landed at $5.60B. After the day began at $13.99, the stock was seen hitting $15.76 as its intraday high price and $13.77 as its bottom price. The prior close was recorded at $19.13.

Valeant Pharmaceuticals International, Inc. recently traded -39.51% below its 50-day simple moving average and went down -58.24% from its 200-day simple moving average. The debt-to-equity ratio (D/E) remains 5.87. The institutional ownership stake in the corporation is 66.80% while the Beta value stands at -0.15. Its RSI (Relative Strength Index) reached 29.50.

Valeant Pharmaceuticals International, Inc. (NYSE:VRX) Analyst Research Coverage

A number of Wall Street analysts recently commented on the stock. Currently the company has earned ‘Buy’ from 3 equity analysts. 0 analysts assign ‘Sell’ rating for the stock. 12 analysts have suggested the company is a ‘Hold’. ‘Underperform’ verdict was shared by 4 analysts and ‘Overweight’ recommendation was issued by 2 analysts. The company has an Average Rating of 2.81 based on Thomson Reuters I/B/E/S scale of 1-5.

The Insider Activity Don’t Lie: Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

Valeant Pharmaceuticals International, Inc. (NYSE:VRX), with -12.58% losses in previous 5 sessions, is under coverage of 21 analysts who collectively assign a hold rating on stock. 5 of the brokerages firms have a buy or better rating; the 1 sells versus 3 underperforms. The 18 stock analysts who cover the stock have an average PT at $36.22, with individual targets in the range of $16 to $81. The shares ended last trade at $19.32, implying that Wall Street analysts see shares climbing about 87.47 per cent in 12 months’ time.

Insider Trading News: Insiders at the company look optimistic about the outlook as they seem to accumulate shares while they have -80.99 retreated so far this year. A Director at Valeant Pharmaceuticals International, Inc. (VRX) purchased shares in a trading activity completed on Thursday August 11, 2016. Karabelas Argeris N accumulated 4,000 shares in the company at a per-share price of $24.65 and ended up spending $98,600 in the investment. Karabelas Argeris N now have 20,726 shares in the stock after this transaction. A Director in the company, Ross Thomas W. Sr., on Monday June 13, 2016 spent $97,600 from the purchase of 4,000 shares at a per-share price of $24.65. Insiders are expected to have better knowledge about the health and prospects of their company, which is why insiders’ move deserves attention.

Valeant Pharmaceuticals International, Inc. (NYSE:VRX) Earnings on Tap

Investors interested in trading VRX stock at the current market price of $19.32/share should know the company will next release quarterly results for the September 2016 quarter. For the reporting quarter, equity analysts expect the stock to deliver $1.76 in earnings per share (EPS). That would represent a -35.77 per cent year-over-year decrease. Revenue for the same quarter is predicted to arrive at $2.5B.

Historical Quarterly Earnings: Last quarter, Valeant Pharmaceuticals International, Inc. generated nearly $2.42B in sales and net income of $1.4/share. That compares with the mean forecast $2.46B and $1.48/share, respectively. For the prior quarter revenue for the stock hit $2.37B, with EPS at $1.27.

Valeant Pharmaceuticals International, Inc. (VRX) Analyst Rating News

Morgan Stanley is following shares of Valeant Pharmaceuticals International, Inc. (VRX), so its rating change is noteworthy. The company stock was upgraded to Overweight from Equal-Weight, wrote analysts at Morgan Stanley, in a research note issued to clients on Wednesday August 17, 2016. There was another key research note provided by Mizuho on Monday August 15, 2016. The firm lifted its rating on VRX from Underperform to Neutral.

Price Potential: Even though the stock has posted -8.52% fall in value, its new closing price reflects a -83.88% fall in value from company’s one year high of $119.87. The stock is currently holding below its 50-day SMA of $23.64 and below its 200-day SMA of $25.92. Over the last 3 months and over the last 6 months, the shares of Valeant Pharmaceuticals International, Inc. (VRX), have changed -12.02% and -35.36%, respectively.

What Analysts say about Valeant Pharmaceuticals Intl Inc (NYSE:VRX)?

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) received a stock rating upgrade from Mizuho on Aug-15-16. In a note to investors, the firm issued a Neutral rating. The analysts previously had an Underperform rating on the stock.

Analysts have a consensus target price of $43.00 in the 12-month period. The price objective is 61.71% higher than the recent closing price of $26.59. The 52-week price range is $18.55-$252.51 and the company has a market capitalization of $8.90 billion. Analysts covering the shares maintain a consensus Buy rating, according to Zacks Investment Research. 3 analyst has rated the stock with a sell rating, 8 has assigned a hold rating, 0 says it’s a buy, and 4 have assigned a strong buy rating to the company.

Valeant Pharmaceuticals Intl Inc (VRX) on August 9, 2016 announced second quarter 2016 financial results.

“We continue to make progress towards stabilizing the organization,” said Joseph C. Papa, chairman and chief executive officer. “We are also announcing a new strategic direction for Valeant, which, at its heart has a mission to improve patients’ lives, and will involve reorganizing our company and reporting segments. I am continuously encouraged by the commitment of our employees who work hard daily, rebuilding our relationships with prescribers, patients and payors, and regaining the trust of our debt holders and shareholders. Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters.”

Total Revenues

Total revenues decreased 11% to $2.42 billion in the second quarter of 2016 as compared to $2.73 billion in the second quarter of 2015, driven primarily by a decline in product sales revenues from our existing business, as well as negative foreign currency exchange impact, partially offset by incremental product sales revenues from acquisitions completed in 2015.

In the Developed Markets segment, revenues declined 14%, driven mainly by a decline in product sales revenue from our existing business, primarily as a result of lower average realized prices which were in turn impacted by higher managed care rebates, lower price appreciation credits, our fulfillment agreement with Walgreens, and higher group purchasing organization (GPO) rebates.  These factors were partially offset by an increase in contribution from acquisitions completed in 2015, primarily from Salix Pharmaceuticals, Ltd. and certain assets of Dendreon Corporation.

In the Emerging Markets segment, revenues were flat as compared to the second quarter of 2015, primarily due to a small decline in the existing business and negative foreign currency exchange impact, which were partially offset by incremental product sales revenue from acquisitions completed in 2015.

Pre-Market Stocks Briefing: Ryerson Holding Corp. (NYSE:RYI), Valeant Pharmaceuticals Intl Inc. (NYSE:VRX)

Ryerson Holding Corp. (NYSE:RYI) stock dropped -5.23% in today’s pre market session with the price of $15.42. Over the last one month and over the past three months, Ryerson Holding, Inc’s shares gained 8.76% and 119.43%, respectively. Furthermore, the stock rose 248.18% since the start of this year. The company’s shares are trading 9.41% above their 50-day moving average. Additionally, Ryerson Holding, Inc has an RSI of 47.08.

Ryerson Holding Corporation (RYI) announced July 19, 2016 the pricing of its previously announced underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $15.25 per share, before underwriting discounts and commissions. In addition, the Company has granted the underwriters a 30-day option to purchase up to 750,000 additional shares of common stock at the public offering price less underwriting discounts and commissions.

The offering is expected to close on July 25, 2016, subject to the satisfaction or waiver of customary closing conditions. The Company intends to use the net proceeds of the offering to repurchase, redeem, defease or otherwise repay portions of its outstanding indebtedness, including but not limited to, its outstanding 11.25% Senior Notes due 2018, from time to time.

Valeant Pharmaceuticals Intl Inc(NYSE:VRX) stock on Friday’s pre market session gained 4.12% at price of $24.51. Over the last one month and the previous three months, Valeant Pharmaceuticals Inc’s shares gained 6.81% and ticked down -29.63%, respectively. Additionally, the stock has lost -76.84% since the beginning of 2016. The company’s shares are trading below their 50-day and 200-day moving averages by -4.32% and -65.82%, respectively.

Valeant Pharmaceuticals International, Inc. (NYSE & TSX: VRX) and Progenics Pharmaceuticals, Inc. (PGNX) July 19, 2016 announced that the U.S. Food and Drug Administration has approved RELISTOR® (methylnaltrexone bromide) Tablets for the treatment of opioid-induced constipation (OIC) in adults with chronic non-cancer pain. Valeant expects to commence sales of RELISTOR Tablets in the U.S. in the third quarter of 2016.

“Opioid-induced constipation represents a long-lasting and potentially debilitating side effect of opioid therapy for millions of patients suffering from chronic pain,” commented Joseph C. Papa, Chief Executive Officer of Valeant. “We believe Oral RELISTOR represents a new alternative treatment for OIC, and we look forward to introducing the more convenient oral formulation as soon as practicable.”

“We are delighted that this milestone for RELISTOR has been achieved, and that patients suffering from OIC will have this new treatment option,” said Mark Baker, Chief Executive Officer of Progenics. “We expect the market to be receptive to a more convenient oral tablet formulation of RELISTOR’s well-established subcutaneous preparation. We would like to thank, in particular, Dr. Tage Ramakrishna and Dr. Robert Israel of Valeant for their work over many years in the clinical development of RELISTOR.”