What's Behind Valeant Pharmaceuticals Inc.'s 11% Move Higher?

Shares of Valeant Pharmaceuticals (NYSE: VRX), the embattled drugmaker that's predominantly grown through acquisitions and drug-price increases over the years, surged as much as 11% by 3 p.m. EST Friday. What's interesting is that there's no clear catalyst, suggesting that a combination of carryover news and an overall move higher in the broader market is responsible for the rally.

What's probably front and center for Valeant's shareholders is the progress the company has made on its outstanding debt over the past couple of years. Through the end of its third quarter, the company had reduced nearly $6 billion in debt from its first-quarter 2016 peak. That's well ahead of the $5 billion that CEO Joe Papa was targeting by February 2018. It's true that Valeant has used divestitures rather than positive free cash flow to pay down the majority of this nearly $6 billion, but nonetheless, the company and management team have some breathing room to operate.

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Source: Fool.com