Valeant (VRX) Stock Down on Asset Sale Speculation
NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is declining 1.13% to $28.75 in early afternoon trading on Wednesday after reports suggested the company is considering selling some assets to reduce debt.
The Canadian pharmaceutical company may be exploring a sale of some cosmetics and cancer drug assets, sources told Bloomberg.
A dermatology unit and the prostate cancer treatment Provenge may be up for sale as well the cardiac drugs bought from Marathon Pharmaceuticals in 2015, including Insuprel and Nitropress.
Valeant increased the price of the latter treatments by 525% and 212%, respectively, just after the acquisition last year, Bloomberg added.
These sales could generate up to $1 billion, but a deal is not certain, Bloomberg noted.
Separately, Valeant Pharmaceuticals has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing stock performance.
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.
