Valeant: These Are the Huge Deals That Boosted VRX Stock

 valeant stock

Valeant’s Sell-Offs to L’Oreal and Sanpower Boosted VRX Stock

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is starting 2017 off on a good note, with VRX stock up over six percent by early afternoon trading on Tuesday. The boost came as a result of several big sales that the company was able to make, giving the embattled Valeant some much-needed relief.

Valeant sold its “CeraVe,” “AcneFree,” and “AMBI” skincare brands to L’Oreal SA (EPA:OR) for $1.3 billion in cash. VRX stock also got a boost out of a solid $820.0 million deal to sell Dendreon Pharmaceuticals to Sanpower Group Co. The Sanpower deal is centered around “Provenge,” a prostate cancer vaccine.

“We are pleased to take this step forward in our divestiture program and are continuing to evaluate transactions to simplify our business and strengthen our balance sheet,” said Valeant CEO Joseph C. Papa. (Source: “Valeant sells cancer vaccine to China’s Sanpower Group for $819.9M,” Montreal Gazette, January 10, 2017.)

And if that wasn’t enough good news, the company announced positive results from a second confirmatory phase three test for a lotion for the treatment of plaque psoriasis. (Source: “Pre-Open Stock Movers 01/10: (GNVC) (ILMN) (VRX) Higher; (ASNA) (WMB) (FRSH) Lower (more…),” StreetInsider.com, January 10, 2017.)

The first week-and-a-half of 2017 may be a small sample size so far, but the year has been kind to VRX stock all the same. Valeant stock has climbed nearly 12% since the new year, and this is a welcome change of pace for Valeant investors, who had quite the rough ride in 2016. Shares dropped by over 87% last year, as multiple investigations regarding fraud were levied against the company for—among other things—price hikes of essential medications.

Several former executives are either currently being investigated or have already been charged as the case against Valeant continues.

Having said all that, some still see value in VRX stock, as evidenced by Tuesday’s sell-off and rally. Valeant stock boosters can only hope that 2017 has more good news in store for the company, and that 2016 will be an aberration best left in the past.