Why Valeant (VRX) Stock Is Surging Today
NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals (VRX) are soaring 11.07% to $22.17 in early-afternoon trading on Wednesday after Walgreens Boots Alliance (WBA) said it's "satisfied" with its relationship with the drugmaker, according to the Fly.
Walgreens added that it is in constant communication with Valeant's management team.
Valeant announced in December that it had reached a 20-year drug pricing and distribution agreement with the pharmacy chain Walgreens. The deal was disclosed two months after Valeant terminated its controversial relationship with specialty pharmacy Philidor.
Additionally, Rodman & Renshaw claimed that shares could reach $90.
Upcoming potential catalysts include an FDA review of its Biologics License Application (BLA) for brodalumab, an FDA approval decision on oral Relistor for opioid-induced constipation (OIC) and an approval decision for Vesneo (latanoprostene bunod) for the treatment of glaucoma, the firm explained, according to Barron's.
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.