May 9, 2018 / 10:51 AM / a year ago

BUZZ-Street View: Valeant's strong quarter, name change cannot erase debt concerns

** Valeant Pharmaceuticals International on Tuesday decided to change its name to Bausch Health Companies Inc and reported strong first-quarter earnings

** Co says it delivered overall organic revenue growth for the first time since 2015; shares of the company that have lost about 90 pct of their value from the peak in 2015 rose about 9 pct on Tuesday


** Piper Jaffray (rating: “underweight”) says in note titled “strong quarter and a new name, but that balance sheet...” that performance of diarrhea drug Xifaxan was “heartening”; however continued competition for key products, concerns about co’s dermatology business and net debt/2018 EBIDTA of 7x points to more risk than upside

** TD Securities (rating: “buy”) says VRX’s “trough year” is off to a good start and recommends focusing on organic trend as an indicator of sustainable performance

** J.P. Morgan (rating: “underweight”) says strong performance of co’s Salix unit helped offset lower-than-expected sales in its dermatology business in the quarter; however, focus in 2018 is on new launches

** JPM remains below VRX’s long-term expectations of the launches and slowing patent expirations driving mid-single digit growth in 2018-2021

** RBC Capital (rating: “sector perform”) believes the quarter highlights continued turnaround the company has made from an operational and capital structure perspective, but remains on sidelines considering leveraged balance sheet

Reporting by Manas Mishra in Bengaluru

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below