NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) is dropping its growth-by-acquisitions strategy for the time being to try to reduce debt, boost its stock price and one day return to its traditional deal-making in a stronger position, sources told Reuters.
After spending $19 billion on 40 acquisitions since 2008, the Canadian drugmaker is regrouping after failing last month to acquire Botox-maker Allergan (AGN) , sources said.
The new strategy, targeted for the next two to three quarters, may surprise some investors accustomed to Valeant's usual way of doing business.
Must Read: Warren Buffett's 25 Favorite Stocks
Speculation about Valeant's next takeover target has driven up shares in generic drugmaker Mylan (MYL) , medical device maker Cooper Cos. (COO) and Teva Pharmaceuticals Industries (TEVA) , Reuters said.
Shares of Valeant Pharmaceuticals closed down 0.66% to $143.94 yesterday.
TheStreet Ratings team rates VALEANT PHARMACEUTICALS INTL as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALEANT PHARMACEUTICALS INTL (VRX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."