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VALEANT PHARMACEUTICALS INTL INC T.VRX

"Valeant Pharmaceuticals is a global specialty pharmaceutical firm with a focus on branded products for the dermatology, gastrointestinal, and ophthalmology markets. The firm also has a branded generics business that operates primarily in Latin America, Eastern Europe, and Asia."


TSX:VRX - Post by User

Post by Lumberfeverlongon Dec 01, 2015 2:22pm
118 Views
Post# 24343686

Why Own VRX When you Can Own CRX

Why Own VRX When you Can Own CRXI'm truly perplexed by the recent rapid appreciation in Valeant's SP.   With all of the controversy surrounding Valeant and its exposure to US goivernment reimbursement plans and its affiliation with specialty pharmacies, why would someone invest in Valeant shares when they can invest in a similar business model with Concordia Healthcare with far less reputational and regulatory risk? CXR has not engaged in anything close to the price gouging engaged in by VRX and has no relationships with specialty pharmacies.  Their exposure to US government reimbursement plans is minimal and they just completed a transformational transaction that gives them a large global footprint.  Their 2016 guidance is exceptional and will generate substantial free cash flow to pay down the debt associated with their recent transaction.  Could someone explain why VRX is flying high while CXR seems to be stalled? 
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