Tag Archives: vrx

5 Big-Name Medical Stocks Show Notable Chart Action

Loading the player… There’s a lot of news breaking in the medical sector today. Let’s take a look at five medical-related stocks with notable charts: Valeant Pharmaceuticals ( VRX ), Eli Lilly ( LLY ), Teva Pharmaceuticals ( TEVA ), Inogen ( INGN ) and Ligand Pharmaceuticals ( LGND ). Valeant Plunges On Results Valeant reported preliminary fourth-quarter earnings that missed expectations and slashed its guidance. The specialty drugmaker warned that it could potentially default if it doesn’t file its annual report by an April deadline. Valeant’s financials are under an ongoing review after a scandal broke out last fall. Shares plunged more than 50% in giant volume, hitting their lowest level in four years. The stock is now trading at 86% below its all-time high reached last August. Late-Stage Trial Change Hits Lilly Eli Lilly crumbled as much as 6% after announcing it’s changing the goal of the phase-three clinical trial for its Alzheimer’s treatment, signaling that the drug can only treat cognitive capabilities and not functional capabilities as well. The decline came in big turnover, and sent shares to a one-year low in intraday trade. Lilly is now 23% below its high reached in September. Teva’s Acquisition Delayed Teva Pharma’s $40.5 billion acquisition of Allergan’s generics unit has been delayed until June as it works to get regulators’ approval. Shares dropped more than 5% in intraday trade. Volume was heavy. Shares are now trading 14% below a consolidation buy point and 21% below their July high. Inogen Beats Views Inogen reported better-than-expected quarterly results on Tuesday. The company makes oxygen tanks for chronic respiratory conditions. The gap-up put shares above their 200-day line in intraday trade, but the stock was struggling to hold above that level as it pared some of its gains. Inogen was able to retake the 50-day line in Monday’s session. It’s now about 27% below its September peak. IBD 50’s Ligand Basing Meanwhile, IBD 50 stock Ligand Pharma is working on a double-bottom base with a potential buy point at 106.08. Shares are currently trading about 7% below the pivot.

Valeant Stock Plummets As Guidance Slashed After Q4 Earnings Miss

Shares of Valeant Pharmaceuticals International ( VRX ) plunged to a four-year low Tuesday after the specialty drugmaker’s Q4 earnings and guidance missed analysts’ expectations. Valeant reported adjusted earnings of $2.50 a share, 11 cents short of the consensus estimate of analysts polled by Thomson Reuters. Revenue of $2.79 billion beat consensus by about $40 million. The results were preliminary and unaudited because of an ongoing review of the company’s current and past financial reporting after a scandal broke out last fall, delaying the filing of the 10-K annual report. Valeant didn’t provide year-over-year comparisons because 2014 financials are still under review, but it previously reported Q4 2014 earnings of $2.58 a share on revenue of $2.28 billion, so on that basis EPS fell 3% and sales rose 22%. Valeant slashed its guidance for the current quarter. It now expects revenue of $2.3 billion to $2.4 billion, more than $500 million below its previous guidance, with EPS guidance down about $1 to a range of $1.30 to $1.55. For the year, Valeant hacked more than $1 billion off its sales guidance, now $11 billion to $11.2 billion, with the EPS range down more than $3 at $9.50 to $10.50. Valeant stock plunged 44.5% to 38.34 in late morning trade on the stock market today , its lowest point since November 2011. There were multiple reasons for the shortfall, many to do with the messy transition of the company’s business model in the wake of the scandal. Valeant had severed its relationship with now-defunct specialty pharmacy Philidor after a number of allegations were lodged against it. In December, Valeant announced a new partnership with Walgreens Boots Alliance ( WBA ) to distribute the dermatology and ophthalmology drugs previously channeled mostly through Philidor, but Valeant CEO J. Michael Pearson admitted on the company’s earnings conference call with analysts that the deal hadn’t been well received, and Valeant has made unspecified changes after complaints from distributors. Pearson said Valeant has also been negotiating with payers over the pricing and rebating of drugs, which also contributed to the reduced guidance. Valeant has been the target of criticism all the way up to the U.S. Congress over its historic price increases, but the Walgreens deal brought with it a 10% price cut across the board. Pearson said that, overall, Valeant’s price increases this year are among the lowest in the industry, as it’s tried to accommodate payers. Pearson said that the impact of most of this is being felt in Q1, and that “we in essence lost a quarter.” For that reason, Valeant gave guidance for the 12 months starting April 1, which it says is more representative of its business going forward. Valeant expects EPS of $10.75 to $11.25 for the period, which is still below the Street’s average estimate of $15.02. It forecast revenue of $11.6 billion to $11.8 billion, which has no point of comparison, since there isn’t a consensus revenue number for Q1 2017.

Valeant Now Reporting Q4 Earnings On March 15 After Delay; Stock Up

Specialty-drug giant Valeant Pharmaceuticals International ( VRX ) was up sharply Monday after it set a new date to report its Q4 and full-year 2015 earnings. Valeant said it would report the results on March 15, just over two weeks after the originally scheduled date of Feb. 29. Late on Feb. 28, Valeant had delayed the report due to the return of CEO J. Michael Pearson , who had been on leave for two months being treated for severe pneumonia. While his return initially heartened the Street, the fact that Valeant also withdrew its 2016 guidance, along with the leaked revelation that Valeant was the subject of a previously undisclosed SEC investigation, pushed the stock down 18% on Feb. 29. And even with Monday’s rise it still hasn’t recovered much. Several investment banks downgraded or cut the target price on Valeant stock after the Feb. 28 announcement, and Deutsche Bank suspended coverage entirely. Valeant also said it will update its 2016 guidance on its earnings conference call on March 15, as well as report past results, though the numbers will still be preliminary. The company has sought an extension from the SEC on its official 10-K annual report as it awaits the outcome of an ad hoc committee’s review of its finances, launched late last year after a scandal broke surrounding Valeant’s relationship with now-defunct specialty pharmacy Philidor. The committee already said last month that $58 million in Philidor-related revenue was improperly recognized in 2014, and its review continues. Valeant stock had been trading near a three-year low since last week, but in afternoon trading in the stock market today , shares were up 8%, near 66.