Valeant (VRX) Stock Falls on FDA Scrutiny

Shares of Valeant (VRX) are down this morning as the FDA debates risks associated with the company’s new psoriasis drug.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals (VRX)  are sliding 1.65% to $22.64 this morning after the FDA expressed concern over the suicide risks associated with the company's new experimental psoriasis treatment, Bloomberg reports.

The FDA said that the company should either conduct further trials to better understand the side effects of the drug or, if the drug is approved, Valeant should include a warning on the label.

Valeant's brodalumab is meant to treat moderate to severe plaque psoriasis. The safety issues associated with the drug are "complex," according to an FDA report released today.

Six suicides occurred during the clinical trials for the drug. Along with the suicide risk, FDA staff raised questions about potential linkages to major cardiovascular events in trial patients.

The Canadian drugmaker is meeting with the FDA on Tuesday, July 19, to discuss the drug's approval.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: VRX

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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