BUZZ-Valeant bounces 16 pct

Thu Nov 19, 2015 5:04pm EST
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** U.S.-listed shares of Valeant Pharmaceuticals International rise after analysts issue positive notes, and a big Valeant investor suggests Allergan plc should buy the Canadian drugmaker

** Shares close near day's highs at $84, gain ground for second straight session

** No single reason for Thursday's rise - Valeant biggest one-day percentage gain since Jan 6, 2011. Trading volume exceeds 10-day moving average

** Citi initiates Valeant debt with overweight rating, says much of the bad news "priced in" and investors should look in "secured and shorter-dated unsecured tranches of the capital structure"

** Canaccord Genuity analyst Neil Maruoka, says no major "downward inflection points" in key Valeant products in the retail channels, thus not expecting more downside in the stock

** If Valeant guides to anything close to $14.00 EPS for 2016, "stock will work from there" writes Maruoka, who rates the stock a buy

** William Ackman's activist hedge fund Pershing Square Holdings, #3 VRX owner, said Allergan would be a good fit to buy Valeant, according to New York Post story published late Wednesday (

** Pfizer Inc is in talks to acquire Allergan Plc, but some investors say a deal would not pass regulators

** Thursday's sharp rally in VRX brought out some options bulls; Nov $80 and $83.50, set to expire Friday were among the most active contracts

** Stock still off 43 pct since Oct 20, when short-seller Citron Research accused Valeant of fraud (Reporting by Sinead Carew and Saqib Ahmed in New York, additional reporting by Rosmi Shaji in Bengaluru)