Here's What Overshadowed Valeant Pharmaceuticals in October, Pushing Its Shares Down 18%

Here's What Overshadowed Valeant Pharmaceuticals in October, Pushing Its Shares Down 18%

Shares of Valeant Pharmaceuticals (NYSE: VRX), an embattled drug developer that's primarily grown through price hikes and acquisitions over the years, tumbled 18% during October, according to data from S&P Global Market Intelligence. The downside catalysts for Valeant, in what was an otherwise quiet month for news, appears to concern its debt and an existing lawsuit against the company.

The first issue is likely tied to a press release on Oct. 16 concerning debt offerings for it and its subsidiary. Though Valeant's management team has worked hard to extend its debt-maturity dates in order to give its product portfolio a chance to turn itself around, the simple fact that Valeant is issuing more debt as it's attempting to pay down what it already owes isn't sitting well with some investors.

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Source: Fool.com