What’s Pushing VRX Stock Back Up?
Valeant Pharmaceuticals Intl Inc (TSE:VRX) sees VRX stock ride a roller coaster as the shares rise eight percent today despite falling 19% just a day before.
This sudden rise hardly offsets the pounding that VRX stock has withstood for the past month, dropping 30% overall since the beginning of October. But this might be an indicator of a couple of positive developments in the sordid tale of VRX stock: Donald Trump is seen as friendlier towards the pharmaceutical industry, and VRX stock might have bottomed.
In terms of the bottoming, I’ll point you to this recent article to explain where our thoughts are on that possibility.
And now to President-elect Trump. While presidential-hopeful Hillary Clinton was on the campaign trail, she often took pharmaceutical companies to task for their propensity to price hike. And Valeant was hardly inoculated against such claims.
For instance, Valeant was reported to have raised the price of its lead-poisoning drug by a daunting 2,700%, qualifying for some of this pharma-aimed ire. (Source: “Valeant hiked lead poisoning drug price by 2,700 per cent: report,” CTV News, October 11, 2016.)
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Clinton even criticized a Valeant drug directly in a campaign ad. She called out a product of theirs and the pharmaceutical industry at large, again for perceived consumer abuse in the pricing of medication. (Source: “This Is Why Hillary Clinton’s Attack on Drug Price Hikes Doesn’t Add Up,” Fortune, March 4, 2016.)
Which brings us to a post-Trump-victory world. With Clinton no longer vying for the White House, many pharmaceutical companies have seen their prices jump in what may be a friendlier president in Trump.
Exactly which of these two factors played a larger role in the ascendance of VRX stock (if they played any role at all) is hard to say. But they both provide some idea of what to expect from VRX stock going forward.
This is of course glossing over the multiple investigations into Valeant concerning accusations of fraud and other misdeeds, which may plague share prices going forward. In any case, VRX stock is certainly a mover and shaker these days, and worth keeping an eye on.