Modest Money | May 13, 2016 02:07AM ET
Valeant Pharmaceuticals (NYSE:VRX)
Valeant Pharmaceuticals has had an incredibly hard time in the market as of late, and for good reason. Late last year, it was uncovered that the company was using its relationship with a pharmacy to fluff the numbers and make it look like it was doing better than it actually was. However, we’ve seen quite a bit of change since the scandal. So, I believe that we’re finally nearing the bottom of the declines. Today, we’ll talk about the scandal, what’s changed since, and what we can expect to see from VRX moving forward.
h2 The VRX Scandal/h2Late last year, an analyst firm known as Citron decided to do some digging into Valeant. After all, the company had come under fire for pricing practices, but the stock was climbing. When Citron released their report, it was something that no one expected to see. According to their report, VRX and its biggest client, a pharmacy known as Philidor were giving false statements to investors. In fact, in the report, Citron called Valeant Pharmaceuticals the Enron of the pharmaceutical industry.
While I didn’t want to believe the claims, more and more evidence came out proving that VRX had indeed done the wrong thing. Soon, the stock started to fall like a brick dropped from the empire state building. Unfortunately, there was no denying the facts anymore, it was time for Valeant to admit to the wrong doing, and make some changes.
h2 That’s Exactly What Happened/h2Once the Philidor scandal was uncovered, VRX found themselves trapped between a rock and a hard place. The company had to admit that it had done wrong, and make changes to make things whole again. That’s exactly what happened. Here are some of the changes we’ve seen since the Philidor scandal.
At this point, I’m incredibly impressed with the changes that we’ve seen at Valeant Pharmaceuticals. While it is going to take time to win back the trust of investors, the company is clearly headed in the right direction now. All in all, I’m expecting to see long run gains on the stock.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.