BUZZ-Valeant Pharmaceuticals: Surges after Citron has no new allegations

Mon Nov 2, 2015 10:58am EST
 
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(Updates)

** Drugmaker's shares surge 8 pct to $101.23 in heavy trading after Citron's new report has no fresh allegations

** Short-seller Citron Research says is taking a back seat in investigating Valeant, but not backing down from earlier allegations (bit.ly/1Q1YY2b)

** Valeant's stock had tumbled nearly 36 pct since Oct. 21, when Citron said the Canadian company was using specialty pharmacies to inflate revenue

** Citron's head Andrew Left had said he would update allegations on Valeant on Monday, but told WSJ on Sunday that investors shouldn't "expect anything earth-shattering" in the new report (on.wsj.com/1KRISA2)

** Valeant stock on track for best day since Sept. 30

** Jefferies says Valeant's decision to cut ties with Philidor, accused of helping it inflate revenue, was the "right move" to regain investor confidence

** Still, Jefferies joined Canaccord Genuity and Goldman Sachs in lowering its price target on stock; Goldman also downgraded stock to "neutral" from "buy"

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

** Nearly 12 mln shares traded (vs 25-day moving avg of 17.3 mln), 7th most active NYSE-listed stock