Valeant (VRX) Stock Up, Former CEO Pearson Sells 5 Million Shares
NEW YORK (TheStreet) -- Former Valeant Pharmaceuticals (VRX) CEO Michael Pearson has sold nearly 5 million shares and options for a total of $96.8 million, CNBC.com reports.
The embattled drugmaker announced Pearson's departure in March after investigations into its business and accounting practices led Valeant to slash its 2016 revenue forecast and delay filing its annual report.
News of Pearson's sale follows the Sequoia Fund's disclosure late Tuesday that it completely exited its stake in Valeant last month. The mutual fund was once Valeant's largest shareholder, with Valeant accounting for more than 30% of Sequoia's portfolio at one point.
Valeant stock is nonetheless up this afternoon after RBC Capital Markets said that its Oral Relistor treatment should receive FDA approval around its July 19 Prescription Drug User Fee Act (PDUFA) date, during which the agencywill review a new application, Barron's reports.
Additionally, Valeant's latanoprostene bunod treatment has a PDUFA date of July 21, and should be approved at some point this year, the firm said.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Valeant's weaknesses include 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
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 article's author.