December 15, 2016 / 3:12 PM / in 10 months

BUZZ-Valeant Pharmaceuticals: Hits more than 7-year low

** Canadian drugmaker’s U.S.-listed shares fall as much as 6.66 pct to a more than 7-year low of $13.18

** Morgan Stanley cuts rating to “equal weight” from “overweight” and PT to $17 from $25, citing ongoing uncertainty surrounding the company

** Morgan Stanley analysts say they are concerned that Valeant may not sell assets at attractive prices that approach the theoretical $8 bln in asset sales that management discussed this summer

** Since our upgrade in August, our investment thesis that management would stabilize the business and execute accelerated deleveraging via divestitures has been wrong - Morgan Stanley

** Morgan Stanley had upgraded the stock in August, hoping the new management would transform Valeant and reduce debt

** 3 of 21 brokerages rate the stock “buy” or higher, 13 “hold” and 5 “sell” or lower; median PT $22.00

** Toronto-listed shares fall 5.4 pct to C$17.80

** Up to Wednesday’s close, U.S. stock had fallen 86 pct YTD vs with a 11.85 pct decline in the NYSE arca pharmaceutical index

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