- In a note to investors, Wells Fargo's David Maris says Valeant Pharmaceuticals (VRX -1%) is overvalued considering its "poor" prescription trends, execution risk on product launches, patent cliffs and numerous lawsuits.
- He points out that the new management team set, then lowered, guidance, raised prices on more than 50 products, missed key launch targets, experienced manufacturing issues and have seen prescription volumes continue to decline. Also, it recently lost at least 50 salespeople to Synergy Pharmaceuticals.
- On the positive side, the company has sold $2.3B of assets.
- He rates the stock Underperform with a $10 - 13 price range (39 - 21% downside risk).
- Source: The Fly