BUZZ-Valeant Pharmaceuticals: Shares up ahead of Citron's new report

Mon Nov 2, 2015 7:54am EST
 
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** Canadian drugmaker's U.S.-listed shares up 3.6 pct at $98.50 premarket

** Drugmaker said on Friday it is cutting ties with specialty pharmacy Philidor, which was accused of helping Valeant inflate revenue

** Jefferies says management's decision to cut-off Philidor as the "right move" to regain investor confidence

** Up to Friday, Valeant's stock had tumbled 36 pct Oct. 21, when short-seller Citron Research said the company was using specialty pharmacies to inflate revenue

** Citron's Andrew Left said investors shouldn't "expect anything earth-shattering" when he issues a new report on Valeant on Monday, the WSJ reported (on.wsj.com/1KRISA2)

** Goldman Sachs downgrades stock to "neutral" from "buy" and cuts PT from $180 to $122, the lowest on Wall Street

** Jefferies cuts PT to $172 from $224 and Canaccord Genuity cuts to $170 from $190; Median price target on the stock is $200

** Of 22 brokerages, 14 have a "buy" or higher rating, 7 have "hold" rating and 1 says "sell"