Papa, please be a good boy and take out the trash and fix this!

Discussion in 'Valeant Pharmaceuticals' started by anonymous, Feb 8, 2017 at 9:01 PM.

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  1. anonymous

    anonymous Guest

    • Earnings-per-Share (EPS) Growth: Valeant stock is off to a spectacularly bad start in our analysis. The pharmaceutical industry generally manages healthy earnings growth - averaging 46.79% in the last year. Valeant’s earnings growth rate over the same period is -524%. It’s gone below zero.
    • Price-to-Earnings (P/E): And since Valeant stock’s earnings are now in the negatives, we can’t calculate a P/E ratio. Strike two.
    • Debt-to-Equity: Once again, Valeant does nonsensically bad on this metric. Its debt-to-equity ratio is a whopping 712.40%. Its competitors have a reasonable average debt burden of 49.97%.
    • Free cash flow per share growth (FCF) As a whole, pharmaceutical companies are quite cash rich right now. The average firm in the space has grown free cash flow per share by 89.90% in the last year. Valeant has seen it sink -28.06%.
    • Profit Margins: In case it wasn’t clear already, Valeant is bleeding money right now. Its profit margin of -49.14% is well below the industry average of 19.56%.
    • Return on Equity: In our last metric... Valeant is still failing. Early-stage investors have lost -42.45% on their Valeant equity in the last year. By contrast, the pharma industry has been kind to most investors, handing them an average gain of 17.90%.
    As you can see, Valeant stock got shut out on all six key metrics. Earnings, valuation, debt, cash flow, profits, returns - no matter what you look at, Valeant is below average.

    At least from a fundamental analysis perspective, it seems safe to say that Valeant stock is irredeemable.

    Granted, we can’t guarantee that it won’t recover. Crazier things have happened. But not even Deutsche Bank was this far gone. The prospects for Valeant getting out of this are pretty limited.
     

  2. anonymous

    anonymous Guest

    Q1 for derm will be a death blow to that division. They have more problems then you know.
     
  3. anonymous

    anonymous Guest

    There are too many issues to fix. Papa is just riding the mess into retirement. Doesn't need to do anything other than not file bankruptcy.
     
  4. anonymous

    anonymous Guest

    Can we not make this forum about stocks? Take your shit to Seeking Alpha and leave cafepharma for company insiders.

    Your bla bla bla investment analysis is not useful for anyone.
     
  5. anonymous

    anonymous Guest

    You don't have to read everything. Why don't you just get back to work and not even read this forum.
     
  6. anonymous

    anonymous Guest

     
  7. anonymous

    anonymous Guest

    Why don't you go invest in a better stock.
     
  8. anonymous

    anonymous Guest

    There's a lot of opinions here, talk of stock is just one topic since everything leads back to it. Papa not promoting good news is not good for stock holders.
     
  9. anonymous

    anonymous Guest

    From Joe Pops:

    I’ve often about the “noise” that seems to surround Valeant – public commentary, opinion and discussion about our business that is sometimes misguided or just plain wrong. I wanted to use this opportunity to go over some of these allegations – which I’ll label as “fiction” – and give you the real facts.

    “Valeant doesn’t do R&D”

    This is something we hear all the time and nothing could be farther from the truth. In fact, our R&D program and the promise of our pipeline helped attract me to joining Valeant in the first place. We have 43 R&D facilities worldwide, with more than 1,000 R&D and Quality employees. We’ve increased our R&D spend by more than 25% in 2016. We have 135 active R&D projects and expect this year to launch more than 50 products. There’s no clearer example of how we are transforming our company to generate new products that will help drive future growth.

    “Valeant just buys companies and raises prices”

    Again, not true. We’ve committed to single-digit price increases for our U.S. branded pharmaceutical portfolio for this year, and to make certain that past decisions with respect to product pricing are not repeated.

    “It’s difficult to recruit and retain people at Valeant”

    We’ve hired more than 250 sales people in the U.S. and over the past six months we’ve recruited a new leadership team. When I joined the company last May, there was significant turnover within the sales organization. We’ve stabilized considerably: in the fourth quarter of 2016, sales force retention was at 94 percent. We’ve made good progress in this area and I am committed to improve retention in the future.

    “Valeant can’t generate enough cash to meet its obligations”

    In 2016 we paid down $1.84 billion of permanent debt and made all of our scheduled 2017 amortization payments. We continue to expect free cash flow and non-core asset sales to reduce debt by more than $5 billion over the coming months.

    "Valeant has to sell assets at distressed prices"

    We’ve already debunked this statement with the recent divestitures of Dendreon and the CeraVe, AMBI and AcneFree skincare brands which represented, respectively, increases of 100% and 900% from our initial investments.

    “Valeant relies on U.S. prescription market pricing alone for its earnings”

    Just in Bausch + Lomb/International, our largest business segment representing half of our entire business, 87 percent of the sales within that segment are independent of the U.S. prescription pricing model. Clearly, we’re not simply relying on pricing in terms of our portfolio.

    Tuning down the “noise” will be an ongoing effort. We’ll keep an active public profile, speaking with investors and appearing at conferences like the recent J.P. Morgan Healthcare Conference to keep presenting the facts. But ultimately it comes down to execution – our performance in turning our company around – that will quiet the critics. We’re doing all the right things when it comes to improving peoples’ lives through our products. Let’s keep up the great work!

    Best regards,

    Joe
     
  10. anonymous

    anonymous Guest

    why does he always leave out the fact that derm suffered huge loss of reps in December and January. He's fake news!
     
  11. anonymous

    anonymous Guest

    Increased R&D by 25%, so it went from 100m to 125m, like the stock increased 10% when it went from 13 to 14.3. Very compelling when this was trading at 250 at one time and the real pharmas have billions invested in R&D.

    Tell us about trying to convince the banks to roll the maturing notes at higher rates due to the high business risks. Did all those deals close? Did you really make that much or is it really masking some high below the line writeoffs. MP knew all about those, since divestures and acquisitions gives you the ability to bury non-gaap expenses below the line. Wake up pwc, scrutinize this bucket carefully, don't fall asleep at the wheels again.

    Why don't you tell us how moral is still really low, ERP is outdated, overhead increasing, sales are still stale, reputation still sucks, and nepotism still running high instead of blaming the media for exposing the facts about a very troubled company.
     
  12. anonymous

    anonymous Guest

    For all of you liberals out there who bash trump. Doesn't papa sound like trump. It's the medias fault. lol. He's in deep poop and he knows it.

    Company is in quick sand.